Former OpenSea manager declared guilty in NFT insider trading case

Nathaniel Chastain, a former OpenSea product operator, was charged with fraud and money laundering on Wednesday. It is reported that the defendant used information about the internal structure of assets that will appear on the home page of the market to buy and sell transactions.

Chastain bought NFT, and he had planned to show the NFT on OpenSea's website. Soon after, he sold them and earned an illegal profit of more than $50, 000. Federal prosecutors in Manhattan said it was also the first insider trading case in areas such as digital currency.

Prosecutor Thomas Burnett said the former product operator misused his identity for his own benefit and lied about his activities.

The charges against him will be released in June 2022 for the first time in a high-profile case.

According to legal and regulatory experts, the case may have a wider effect on property that is not regulated in policies and regulations at this stage; therefore, investment consultants, traders and others are prohibited from using material non-public information to buy and sell transactions.

Lawyer Chastain argued that when Chastain was part of the company, OpenSea did not believe that irreplaceable tokens would appear on the home page in absolute secrecy.

Its mentor, Peter Steiger, indicated that he would assess the choice of life because they were not satisfied with the certainty, although they valued jurors.

Daniel Filor, a lawyer for Chaistain, argues that defendants should not be managed with requirements that do not exist. He added that Nate was not told not to use or share this particular information.

According to prosecutor Allison Nichols, Chastain committed an illegal act using an anonymous OpenSea account, which shows that he realized he had done something wrong.

Nichols told jurors that Chastain concealed their actions and understood that they had violated the company's confidentiality agreement.

U.S. District Chief Judge Jesse Forman presided over the hearing and set Chastain's verdict on Aug. 22.

In addition, the resolution on the breakup fraud case was rejected by the presiding judge in October last year.

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