A former employee of OpenSea, Nathaniel Chastain, has been charged with insider trading after he allegedly bought 45 NFTs through anonymous wallets and then turned around and sold them for a profit of two to five times the initial purchase price.
The Department of Justice is charging Chastain with one count of wire fraud and a count of money laundering. OpenSea said that it had opened an investigation into Chastain and had asked him to leave due to his violations of company policy.
FULL VIDEO TRANSCRIPT BELOW:
The first ever case for insider trading is now coming into the NFT marketplace. A former OpenSea product manager named Nathaniel Chastain, has been charged with insider trading after allegedly buying 45 nfts through anonymous hot wallets and then turning around and selling them for a profit.
The DoJ’s press release claims that Chastain would use confidential information on which NFTs would be featured on OpenSea’s homepage…where he would then buy them from anonymous accounts before they went live….allowing him to make 2 to 5 times his purchase price. He's being charged with one count of wire fraud and a count of money laundering.
Here’s what's interesting, insider trading is defined on trading securities…so does this mean NFTs are securities? Also, how long before the DoJ cracks down on maybe Coinbase employees…because I’m sure some people that work there know which new coins are going to be introduced on their platform, which almost always results in the coin trading up much higher.
It’s your boy Ross Mac and that was the Crypto Minute on bovada.