Nathaniel Chastain, former head of Product at OpenSea found sinner of fraud and money laundering for Exploit his inner knowledge of any assets will be displayed on NFT marketplace homepage to trade symbols.
According to reports, the former CEO of OpenSea has been charged of inside trading in I condemn NFTs on May 3 for Wire fraud and money laundering by a federal court in New York.
Chastain, responsible for Determine which NFTs it will be featured on The main page of the stock exchange, was charged of Buy selected NFTs feature And sell it shortly thereafter over $50,000 in illegal profit.
US Department of Justice named this case first inside trading scheme includes digital assets. inside trading Back to using confidential or privileged information for personal gain, leading to profitable transactions.
on time of Chastain arrestOpenSea was the largest market for NFTs, attracting users eager to buy or sell the mint unique digital Symbols associated with art or music, among other things. recent data shows that over the past 24 hours and over $4.5 million in Deals happened on Platform.
Chastain had pleaded not guilty to wire fraud and money laundering charges, but the jury was not convinced. legal team Representing the former CEO of OpenSea, he asserted that the data he used was not privileged and also tried to assert that NFTs did not. qualify As securities, ensuring separation of the case.
in the current situation made last In June, US Attorney Damien Williams said Chastain exploited his advanced knowledge of that will be NFTs featured on open c website to make profitable deals for Himself. williams added That, although the case is about trades in novel encryption assetsThere was nothing particularly innovative about Chastain’s behavior – it was just fraud.
Chastity faces up to 20 years old in prison for each charge, though the date for his sentencing has yet to be determined.
This represents first the time the person was found sinner of using characteristic knowledge of trade NFTs. In a separate case, it is worth Note that Ishan Wahi a former Coinbase employeeso is it brother Nikhil was also Accused of inside trading of Digital currencies in July. In the end, Nikhil Wahi pleaded guilty on September 12th.
