The lawsuit was filed one day after the SEC sued Binance, the world's largest cryptocurrency exchange, accusing it of inflating trading volumes, mishandling customer funds and lying about its operations.

This comes on the heels of charges against cryptocurrency exchange Binance and founder Changpeng Zhao for numerous alleged securities law violations.

Prosecutors say Ishan Wahi shared confidential information with his brother Nikhil and their friend Sameer Ramani about which digital assets would be listed on Coinbase.

But caution remains the order of the day among observers, who recall the company's dependence on the price of virtual currencies, which tend to fluctuate frequently.