Nate Chastain, an ex-executive at OpenSea (a leader in the NFT marketplace), has been charged on accounts of money laundering, wire fraud and insider trading. According to allegations, Chastain took unduly advantage of his exclusive insider information to his benefit during his stay at OpenSea. Chastain could be going behind the bars for up to 20 years.
Using Insider Information for Self-interest
According to sources, the US Authorities have never before arrested someone for insider trading in the digital asset industry.
The US Department of Justice released the details surrounding Chastain’s arrest. Nate Chastain was in New York when he got arrested. His appearance in court is due on 1st June 2022.
Charged with the exploitation of insider information, Chastain used his insider knowledge about OpenSea’s NFT listings before the metrics made it to the company’s homepage.
Using this information, the arrested former executive bought many NFTs beforehand and sold them for double or five times the price he purchased the tokens at. Chastain managed to hide his trail by using anonymous accounts and anonymous digital asset wallets at OpenSea.
Justice Department Committed to Combatting Insider Trading
Damian Williams, the US attorney handling the case, commented that Chastain’s behavior is not wholly unprecedented. However, Williams also noted this case is relatively new in the NFT space. He stated that the US Justice Department is committed to fighting insider trading whether it happens on the stock market or the crypto asset space.
There are many ongoing allegations of insider trading in the digital asset industy. Top cryptocurrencies like Binance and FTX faced accusations recently.