Former OpenSea exec charged in first NFT insider trading case. Federal prosecutors accused Nathaniel Chastain of abusing inside information to profit from the tokens.
Federal prosecutors in New York have charged the former head of product of non-fungible token platform OpenSea (NFT) OpenSea of money transfer fraud and money laundering following an insider trading scandal.
Nathaniel Chastain was arrested Wednesday morning in New York. According to a press release Wednesday from the Justice Department, he is expected to appear in the Southern District Court of New York, US.
Nathaniel Chastain, formerly OpenSea’s head of product, is responsible for purchasing dozens of advanced knowledge-based digital collections called NFTs that will soon be featured on the platform’s homepage foundation. He then sold the properties 5 times what he paid for them.
“NFTs may be new, but this type of criminal scheme is not”
“Today’s charges demonstrate this Office’s commitment to preventing insider trading – whether in the marketplace securities or blockchain.”
US Attorney for the Southern District of New York Damian Williams said.
FBI Assistant Director Michael J. Driscoll said the FBI would continue to aggressively hunt down those who choose to manipulate the market in this way.
“As the world’s leading web3 marketplace for NFTs, trust, and integrity are at the core of everything we do.”
“Once we learned of Nate’s conduct, we initiated an investigation and ultimately asked him to leave the company. His conduct violates our employee policies and directly conflicts with our core values and principles.”
An OpenSea spokesperson said
He faces one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years.
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