Former OpenSea CEO Files To Dismiss Insider Trading Charges

Former OpenSea Product Manager Nathaniel Chastain filed a dismissal indictment related to a September insider scandal.

On September 9, 2021, the former OpenSea Product Manager was caught using the organization’s confidential information to collect NFTs before they were advertised on the homepage, then resell them at high prices for profit. It is estimated that this person pocketed 19 ETH or about $68,000 at the time.

Until June this year, the Southern District Court of New York (USA) suddenly arrested and prosecuted Mr. Nathaniel Chastain for fraud and money laundering.

The dismissal action is the latest development in this case. Accordingly, the defendant’s lawyers argued that there was not enough legal basis to convict Mr. Chastain, because there was no law recognizing cryptocurrencies as well as NFT in the US. His attorney stated that:

“In any prosecution under a Carpenter wire fraud theory of insider trading, the existence of securities or commodities trading remains an essential element of the offense.”

Chastain left OpenSea in September 2021. He has subsequently started work on Oval, a new NFT platform that he describes as a “personalized platform for collecting NFTs.”

In June, the DOJ accused Nathaniel Chastain of counts of wire fraud and money laundering involving NFTs traded on OpenSea, the internet’s largest NFT marketplace.

According to the allegations, Chastain defrauded OpenSea by leveraging his knowledge of which NFTs were slated to be featured on the platform’s homepage to purchase the assets before they appeared and then sell them for a profit afterward.

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