DOJ releases information on the indictment of a former product manager in OpenSea with a scheme to commit insider trading in NFTs.
NFT Insider Trading
Nathaniel Chastain was indicted by the Department of Justice (DOJ) with wire fraud and money laundering in a scheme to commit insider trading in Non-Fungible Tokens (NFTs).
Nathaniel Chastain, a former product manager in OpenSea, the largest NFT marketplace, was charged with insider trading for misusing confidential business information for personal gain.
The DOJ, in a press release, revealed that Mr. Chastain misused his knowledge of confidential information to purchase dozens of NFTs in advance of them being featured on OpenSea’s homepage.
This indictment is an important development for enforcement agencies. It is the commitment to crack down on illegal and inappropriate conduct by entrusted personnel in the blockchain space.
The scheme was uncovered last September when a Twitter user disclosed sales of featured NFTs linked to Chastain’s wallet because of his public ownership of CryptoPunk #3501.
Kamran Iqbal, the Co-Founder and Chief Operating Officer (COO) of BSC News said:
“As much as it is sad that this space has users taking advantage of their role, I am glad the space is maturing, we need criminals, and bad actors cracked down to reduce the risk of others being affected. Regulation isn’t a bad thing, it’s actually for the better.”
What is OpenSea:
OpenSea describes itself as the world’s first and largest digital marketplace for crypto collectibles and NFTs. The marketplace offers some of the most exclusive collections in the NFT space. Users can buy, sell, and discover exclusive digital items through OpenSea.
Where to find OpenSea:
Source : bsc.news
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