The crumble crypto conglomerate that tech bros everywhere once hyped up has now claimed another victim . Nathaniel Chastain , former Head of Product at leading NFT marketplace OpenSea , has been sentenced to three months in prison house for insider trading .
The U.S. Attorney ’s Office in the Southern District of New Yorkannouncedthe arrest in a release yesterday , calling the sentencing the “ first - ever digital asset insider trading scheme . ” Chastain was check for insider trading after he allegedly used secret knowledge of what NFTs would be sport on OpenSea ’s home page , andfaced previous convictions of telegram fraud and money laundering . The 31 - yr - old ex-husband - OpenSea executive is also confront three months of family arrest , three yr of parole , a $ 50,000 amercement , and is being wedge to waive the Ethereum profit he made from deal NFTs .
“ Nathanial Chastain faced judge today for violate the trust that his employer placed in him by using OpenSea ’s secret information for his own profit , ” U.S. District Attorney Damian Williams said in the release . “ Today ’s sentence should dish as a warning to other corporate insiders that insider trading — in any market place — will not be tolerated . ”
Image: FellowNeko (Shutterstock)
Chastain wasfirst convictedof insider trading back in May . Since Chastain knew which NFTs would be push on OpenSea ’s site , he would purchase those item first only to sell them curtly thereafter . This permit Chastain to rake in some $ 50,000 in net profit from June 2021 until September 2021 , when heleft the troupe .
Chastain ’s conviction is one of the final , exasperated breathing place ofa once shortly - lived industry that stunningly implodedonce the shiny veneering revealed an horrible ( and purposeless ) underbelly . While OpenSea antecedently announce that the platform would be cracking down on counterfeit NFTs , the company antecedently revealed thata turgid majority of the NFTs featured on the platform were pseudo created with OpenSea ’s slothful minting tool .
EthereumInsider tradingLaw , CrimeOPENSEA
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