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Insider NFT trading scandal: OpenSea CEO found guilty

Former OpenSea NFT market product manager found guilty of fraud and money laundering in connection with insider trading on May 3.

Nathaniel Chastain allegedly used inside information about which assets would appear on OpenSea’s homepage to make purchasing decisions.

What is known about the case

According to the report, the defendants bought non-fungible tokens (NFTs) and soon sold them. which reportedly earned him more than $50,000 in illegal earnings. Manhattan federal prosecutors described the case as the first insider trading case involving digital assets.

Attorney General Thomas Burnett was quoted as saying,

“He abused his OpenSea status to line his own pockets, and lied to cover his tracks.”

According to Attorney General Allison Nichols, Chastain used anonymous OpenSea accounts to conduct the illegal trades. He said his actions showed Chastain was aware of the wrongness of what he was doing.

According to an OpenSea spokeswoman, the company launched an investigation after learning of Chastain’s alleged behavior and “ultimately asked him to leave”.

NFTs are not the stock market

According to the defense’s previous argument, the former product manager was not informed that his business decisions were confidential. While Chastain’s attorney, Daniel Filor, did not contest the deals, he claimed that no one in the company prevented him from using or disclosing information regarding the NFTs that would be displayed on the homepage.

Open sea landing page Featuring NFTs for Sale | open c

On the to rule“But we disagree with the jury’s verdict and we’re weighing our options,” Fillor said.

The original charges were brought last year, and Chastain has since denied them.

According to the claim, Chastain Buyer Approximately 45 NFTs. He sold it for anywhere between two and five times the original cost.

The case raises the question of whether the list could be used to improve regulation of the cryptocurrency and NFT markets. Especially now that the US has fallen behind in supervision and the securities regulator has come under fire for its enforcement actions.

It’s not the stock market. according to Vellore.

The five-day trial in the case began last week and concluded on Wednesday with a conviction in the case.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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