US prosecutors in Manhattan have charged a former product manager at OpenSea with insider trading.
OpenSea’s ex-employee, Nathaniel Chastain, allegedly bought 45 NFTs on 11 occassions exploiting confidential information that the tokens will soon be featured on OpenSea’s home page.
OpenSea is the biggest online marketplace for non-fungible tokens. Chastain’s case is the first such case involving digital assets.
According to the point, Chastain sold his NFTs for two to five times what he paid shortly after they were featured.
Chastain ran the scheme from June to September 2021, selecting which NFTs would be featured.
Chastain transacted through anonymous digital currency wallets and accounts at OpenSea, the prosecutors allege.
Chastain is charged with wire fraud and money laundering, each carrying a maximum 20-year prison term.
