Former OpenSea Employee Hits First Insider Trading Fee Related to NFTs

Nathaniel Chastain, a former OpenSea product manager, has been charged with one wire fraud and one money laundering in connection with the purchase and sale of non-fungible tokens (NFTs).New York said in statement.. The accusations stem from an explicit plan to conduct insider trading “by using sensitive information about NFTs that will be posted on the OpenSea homepage for his personal financial gain,” the statement added. rice field.

“NFTs may be new, but this type of crime plan isn’t,” said Damian Williams, a federal prosecutor for the Southern District of New York.

According to the prosecutor, 31-year-old Chastain was responsible for choosing an NFT to be posted on the OpenSea homepage as part of his work. Prices that buyers are willing to pay for NFTs, or those created by the same author, have usually risen significantly after being displayed on the OpenSea home page.

NFT A digital artwork or collection that uses blockchain technology to prove ownership and personality. The popularity of NFTs has exploded in recent years, but the emergence of mainstream NFTs has also emerged. Many controversies..
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Chastain allegedly used OpenSea’s confidential business information to secretly purchase dozens of NFTs shortly before being introduced. Authorities then said he sold them with a profit of “2-5 times the original purchase price” and “concealed fraud” using OpenSea’s anonymous digital currency wallet and anonymous accounts.

Chastain was arrested in New York on Wednesday morning, the statement added. He didn’t immediately respond to an email comment request from CNN Business. OpenSea told CNN Business that it had begun an investigation and eventually asked Chastain to leave the company. “His actions violated the policies of our employees and were in direct conflict with our core values ​​and principles,” the company added.

“As claimed, Nathaniel Chastain betrayed OpenSea by making money for himself using confidential business information,” Williams said. “In his office to end insider trading. Shows commitment .. “

Source: www.cnn.com

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