The SEC's insider trading allegations against Coinbase, primarily targeting former manager Ishan Wahi, his brother Nikhil, and friend Sameer Ramani, appear valid based on evidence. From June 2021 to April 2022, Ishan allegedly tipped non-public listing details, enabling $1.1 million in illicit profits. Both Wahi brothers settled with the SEC in 2023, agreeing to disgorge gains without admitting guilt, while facing criminal sentences. The SEC classified nine traded tokens as securities, a claim Coinbase disputes. A 2024 ruling against Ramani supported the SEC’s stance, though Coinbase argues it lacks precedent. The settlement avoided a definitive ruling on token classification, leaving some ambiguity, but the evidence of insider trading seems robust.