“Now Yous Can’t Leave”: SEC Finds Itself in Formidable Fight Over Attempt to Assert Regulatory Domain over Secondary Sales of Digital Assets

In July of 2022, the United States Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) each alleged insider trading violations against a former Coinbase employee Ishan Wahi (“Ishan”), his brother Nikhil Wahi (“Nikhil”) (collectively the “Wahi Defendants”), and another alleged acquaintance Sameer Ramani (“Sameer”).