• Former OpenSea manager Nathaniel Chastain was convicted of wire fraud and money laundering in a New York federal court for insider trading of NFTs.
• Prosecutors allege that he made deals using anonymous OpenSea accounts and was responsible for selecting the NFTs to be offered on the platform.
• This is the first case of an individual being punished for alleged insider trading of non-fungible tokens.
Former OpenSea Manager Convicted Of Insider Trading
On May 3, a former OpenSea product manager, Nathaniel Chastain, was found guilty in a New York federal court of wire fraud and money laundering related to alleged insider trading of NFTs. The prosecution argued that he used anonymous OpenSea accounts to make the trades and was responsible for selecting which NFTs were offered on the platform. This is the first time someone has been legally charged with such an offense involving non-fungible tokens (NFTs).
Defense Attorney Argue Innocence
In his closing statement, defense attorney Daniel Filor argued that his client had done nothing wrong as “Nobody told Nate that he couldn’t use or share that information.” However, prosecutor Allison Nichols countered by claiming that Chastain had intentionally broken the law by making deals using anonymous accounts out of fear of getting caught.
Other Cases Involving Cryptocurrency Trading
This trial follows another case in July involving Ishan Wahi, a former employee at Coinbase, and his brother Nikhil who were prosecuted for insider trading in cryptocurrencies. On September 12th, Nikhil Wahi entered a guilty plea in this case as well.
Implications For The Classification Of Non-Fungible Tokens
The outcome of this trial may have far reaching implications for how NFTs are classified as securities under U.S laws going forward as legal experts are paying close attention to its results.
Conclusion
In conclusion, former OpenSea product manager Nathaniel Chastain has been found guilty after being charged with wire fraud and money laundering related to alleged insider trading of NFTs using anonymous accounts on May 3rd in a New York federal court – marking it as the first time someone has been legally charged with such an offense involving non-fungible tokens (NFTs).