July 7, 2022

NFT insider trading charges filed against former OpenSea employee Nate Chastain

NFT insider trading charges filed against former OpenSea employee Nate Chastain

A former senior employee of the largest online NFT trading platform has been arrested and named in the government first The Justice Department said Wednesday that the case alleges insider trading of digital assets.

Nate Chastain, the former head of products at New York-based OpenSea, is accused of buying NFTs shortly before the company planned to feature on its homepage, taking advantage of its exposure and his company’s apparent endorsement, according to the Department of Justice.

NFTs, short for Non-Foldable Tokens, are digital assets rooted in the same underlying technology as cryptocurrencies, and provide a method for digital proof of ownership. The popularity of NFT artworks has exploded during the pandemic, which has led to the emergence of my appreciation 40 billion dollar market last year.

Shipping documents They claim Chastain washed at least 45 NFTs in 2021, each time selling them for two to five times what he just paid.

An OpenSea spokesperson said the company investigated Chastain about the incidents and “eventually asked him to leave the company.”

“His behavior violated our employee policies and directly conflicted with our core values ​​and principles,” the spokesperson said.

The attorney representing Chastain, David Miller, said in an emailed statement that “Mr. Chastain is not guilty of the charges. When all the facts are known, we are confident he will be acquitted.”

After the increase in popularity, the interest in NFT art I’m getting cold In recent months, hackers and scammers have been drawn into the NFT trade.

Some NFTs have been artificially raised in value because their owners have duplicated They sold their own businessA scam known as the wash trade. Others have successfully sold NFTs to others Artists’ work without permission. Actor Seth Green recently claimed That a hacker stole one of his NFTs was preventing him from finishing a new show.