certify
Home arrow Article arrow Article Detail

Ex-OpenSea Employee Arrested In First-Ever NFT Insider Trading Scheme

Profile Image

Joyashree Dey Follow

INDIA

Jun, 08 2022

Jun, 08 2022

likes | comments 0

Article Image

On June 1 Federal Bureau of Investigation in Manhattan charged a former employee of OpenSea, the biggest online marketplace for non-fungible tokens, with insider trading, the first such case involving digital assets.

Nathaniel Chastain, 31, of Manhattan, a former product manager at OpenSea also known as Ozone Networks Inc. was accused of secretly buying 45 NFTs on 11 separate occasions based on confidential information about what NFTs were going to be featured on OpenSea’s homepage for his own monetary benefit, said the US Department of Justice in a statement.

The United States Attorney for the Southern District of New York, Damian Williams, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the FBI, said Chastain chose which NFTs to highlight, and sold his NFTs not long after they were highlighted, commonly for two to five times what he paid.

“NFTs might be new, but this type of criminal scheme is not,” said Damian Williams.

On one occasion, Chastain allegedly more than quadrupled his cash by purchasing the NFT "Spectrum of a Ramenfication Theory" on Sept. 14, 2021, and selling it promptly the following morning.

"NFTs might be new, but this type of criminal scheme is not," Williams said in a statement. "Today's charges demonstrate the commitment of this office to stamping out insider trading - whether it occurs on the stock market or the blockchain."

Chastain proved guilty on Wednesday to wire fraud and money laundering charges, each conveying a greatest 20-year jail term, before U.S. Justice Judge Barbara Moses in Manhattan. The bond was set at $100,000.

"When all the facts are known, we are confident he will be exonerated," Chastain's lawyer David Miller said in an email.

"When we learned of Nate's behavior, we initiated an investigation and ultimately asked him to leave the company," OpenSea said in a statement about Chastain. "His behavior was in violation of our employee policies and direct conflict with our core values and principles."


likes | comments 0

Profile Image

Joyashree Dey

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
Ethereum Devs Introduce Shadow Fork to Test Ether Withdrawals

Ahead of the Ethereum Shanghai update, developers are taking measures to ensure its success by creating a "Shadow Fork" testnet. According to a tweet thread by Go-Ethereum developer Marius Van Der...;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.