Close Menu
    X (Twitter)
    Blockchain Journal
    • News
      • Blockchain News
      • Bitcoin News
      • Ethereum News
      • NFT
      • DeFi News
      • Polkadot News
      • Chainlink News
      • Ripple News
      • Cardano News
      • EOS News
      • Litecoin News
      • Monero News
      • Stellar News
      • Tron News
      • Press Releases
      • Opinion
      • Sponsored
    • Price Analisys
    • Learn Crypto
    • Contact
    • bandera
    Facebook X (Twitter) Instagram
    Blockchain Journal
    Home » Former OpenSea Product Manager Nathaniel Chastain Convicted for Insider Trading

    Former OpenSea Product Manager Nathaniel Chastain Convicted for Insider Trading

    0
    By Atiq Ur Rehman on May 4, 2023 Blockchain News, News, NFT
    Former OpenSea Product Manager Nathaniel Chastain Convicted for Insider Trading
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Nathaniel Chastain, a former product manager at the world’s largest Non-fungible tokens (NFT) marketplace, OpenSea, has been convicted by a jury for NFT insider trading on the marketplace.

    According to a Reuters report on Wednesday, May 3rd, manager Nathaniel Chastain was convicted of fraud and money laundering for using inside knowledge of which assets would be featured on the OpenSea home page to trade NFTs, the activity that generated for him more than $50,000 in profits.

    Statement of U.S. Attorney Damian Williams on the conviction of Nathaniel Chastainhttps://t.co/LLWeMZWpRl pic.twitter.com/VdrJ7EVp3F

    — US Attorney SDNY (@SDNYnews) May 3, 2023

    A Landmark Case for NFTs’ Future

    As Blockchain Journal reported, The US Department of Justice (DOJ) ‘s attorney for the Southern District of New York charged Chastian,31, of New York, on June 1st, 2022, with one count of wire fraud and one count of money laundering after he was arrested on that same day.

    According to the indictment filed in the Manhattan court, from June 2021 to September 2021,  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”.

    As part of his role in the company, he was responsible for selecting the NFTs to be featured on the marketplace home page. These were confidential information, but the product manager used them for his personal financial gains by buying NFTs in advance and then selling them at profits of two to five times the initial price after they went on sale on the marketplace. He used anonymous NFT wallets and anonymous accounts on OpenSea to conduct the transactions.

    A Landmark Case for NFTs' Future

    Chastain pleaded not guilty to the charges. Reuters reported that his lawyer Daniel Filor argued that the manager was not guilty because OpenSea didn’t treat information as confidential during the time of his trades. “Nobody told Nate that he couldn’t use or share that information,” told his lawyer to the jury. The prosecution argued that he knew he was doing wrong as he used anonymous accounts.

    The report suggests Chastain made over $50,000 in dozens of illegal NFT trades. He was asked to resign by the NFT powerhouse in September 2021, to which the company said he violated employee policies.

    After the DOJ charges, he filed five motions to drop the charges and exclude the term insider trading arguing that NFTs are not securities. Nevertheless, the judge denied the motion, and the jury found him guilty of NFT fraud and money laundering. Each charge carries a maximum sentence of 20 years in prison.

    Experts believe it is a landmark case and might significantly influence the legal classification of NFTs. It is feared that the outcome of this case will cement the NFTs’ classification as securities.

    Featured Nathaniel Chasta Opensea
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Atiq Ur Rehman
    • X (Twitter)
    • LinkedIn

    Atiq is a Electronics Engineer with a passion for writing about disruptive technologies, including blockchain. With a deep understanding of the technical aspects of emerging technologies and their potential to transform industries, this author brings a unique perspective to the world of cryptocurrency and blockchain.

    Related Posts

    WLFI plummets: traders bet on new lows after a 47 million burn and weakened demand

    September 3, 20252 Mins Read

    Ondo Finance launches more than 100 tokenized stocks and ETFs to expand on‑chain access

    September 3, 20253 Mins Read

    CFTC gives green light to QCX: Polymarket returns to the U.S. through a regulated vehicle

    September 3, 20253 Mins Read

    HBAR rises 3% after volume spike: technical signals point to a possible breakout

    September 3, 20253 Mins Read

    PayPal enables crypto for 650 million users: what really changes

    September 3, 20253 Mins Read

    Lido launches GG Vault: one-click access to DeFi yields for ETH and staked‑ETH

    September 3, 20252 Mins Read

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 Blockchain Journal

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.