Former OpenSea Product Manager files a motion to dismiss insider trading charges! Since a few days ago, the community has been talking about the recent update on ex-OpenSea Product Manager Nathaniel Chastain, who was arrested in June.
In June, the Department of Justice (DOJ) and the FBI arrested former OpenSea Product Manager Nathaniel Chastain. According to the DOJ, Chastain was charged with wire fraud and money laundering, which connected with a scheme to commit insider trading in NFTs. He used confidential information about what NFTs would be featured on OpenSea’s homepage for his financial gains.
Former OpenSea product manager becomes the first individual indicted for a digital asset Insider trading scheme. This is another indication that the feds are getting serious about digital asset fraud. https://t.co/a694tNqRJ4
— A.J. Perez (@byajperez) June 1, 2022
FBI Assistant Director-in-Charge Michael J. Driscoll said, “In this case, as alleged, Chastain launched an age-old scheme to commit insider trading by using his knowledge of confidential information to purchase dozens of NFTs in advance of them being featured on OpenSea’s homepage.”
Updates on the Case
A few days ago, the legal team representing Chastain filed a motion to dismiss the insider trading charges. The lawyers argued that NFTs at issue are not securities or commodities.
The legal team stated, “In charging this case—the first of its kind in the digital asset space—in which the government acknowledges that the NFTs at issue are not securities.”
In addition, the team also argued that the wire fraud is invalid because the alleged misappropriated information is not OpenSea’s property. They also wanted to dismiss the money laundering charge.
Since the news dropped, the community has been comparing the case of Nathaniel Chastain with the former Coinbase Product Manager, as both were involved in an insider trading scheme.