Former OpenSea product manager Nate Chastain has been found guilty of fraud and money laundering, Reuters said. May 3rd.
Chastain purchased non-fungible tokens (NFTs) that he chose to feature on the OpenSea marketplace and sold those assets some time later.
According to reports, this allowed him to make an illegal profit of $50,000.
Attorneys said the lack of OpenSea’s policy on classified information bound Chastain to “standards that didn’t exist.” A similar argument in Chastain’s defense was reported on his May 2nd. The attorney suggested that Chastain’s decision on his NFT of interest “was not considered classified by OpenSea at the time.”
But prosecutor Allison Nichols said Chastain “abused his position at OpenSea” for profit, and the fact that he used an anonymous account to trade meant he was doing something wrong. He said it showed that he knew.
The case has been ongoing since 2021. Chastain resigned from OpenSea in September 2021, citing the incident. The Southern District of New York announced indictments against Chastain in June 2022, and Chastain’s trial began in January 2023.
The case is the first in the United States involving insider trading of digital assets.
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