How is insider trading of NFTs a felony if it doesn’t involve a 10b-5 securities violation? The wire fraud theory in U.S. v. Nate Chastain, former OpenSea employee.

Yesterday, the U.S. Attorney for the Southern District of NY Damian Williams announced an indictment against Nathaniel Chastain who allegedly traded at least 45 NFTs while working at OpenSea based on confidential business information that OpenSea would feature the NFTs on its website (thereby attracting greater demand). Chastain allegedly profited by selling the NFTs at…

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Federal grand jury indicts former OpenSea employee Nate Chastain for alleged insider trading of confidential business information of NFTs to be featured by OpenSea [download indictment]

In a stunning announcement, the US Attorney for the Southern District of NY Damian Williams announced that a federal grand jury has indicted former OpenSea employee Nate Chastain for two counts of felonies: (1) wire fraud and (2) money laundering. The first count of wire fraud is predicated on Chastain’s alleged insider trading of NFTs…

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