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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Insider NFT trading — was that wrong?

In a famous episode of Seinfeld, George Constanza was confronted by his boss who said he had been informed that George had sex with the cleaning woman on the desk in his office. George replies: “Was that wrong? Should I have not have done that? I tell ya, I got to plead ignorance.” This week,…

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OpenSea’s Head of Product Nate Chastain gets into hot water for snatching up hot NFTs based on insider knowledge

UPDATE Sept. 16, 2021. The Verge reports that Nate Chastain appears to be no longer working for Open Sea due to the incident. That escalated quickly! OpenSea appointed a third party to undertake an independent review of the incident. OpenSea, a platform where people can buy and sell NFTs, is facing a controversy today. Its…

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