Délit d’initié : Un ancien chef de produit d’OpenSea est entendu par la justice américaine

A former product manager of OpenSea is heard by the American justice

Ex-OpenSea employee on trial for insider trading

Following a case of insider tradingNathaniel Chastain, former product manager of OpenSea was charged by the American justice system with wire fraud and money laundering. If he is presumed innocent until the verdict of the trial, the person concerned nevertheless risks a maximum of 20 years in prison for each of the facts cited.

Indeed, from June 2021 minimum, until September, Nathaniel Chastain used his professional position to generate personal profit.

The nature of this insider trading is that he had knowledge, in advance, of the non-fungible tokens (NTFs) that would be featured on the OpenSea homepage. This confidential information enabled him to purchase copies of said NFTs as soon as possibleto then generate a capital gain of two to five times its initial investment at the time of resale.

Michael J. Driscoll, Deputy Director of Federal Bureau of Investigation (FBI) in New York, insisted that such actions would not go unpunished :

“With the emergence of any new investment tool, such as non-fungible tokens […], some will exploit the vulnerabilities for their own benefit. The FBI will continue to aggressively pursue players who choose to manipulate the market in this way. »

👉 To go further – Discover our tutorial on the OpenSea platform

A behavior betrayed by the blockchain

It was last September that the behavior of Nathaniel Chastain was noted by the community. Indeed, if the accused used different addresses to commit these acts, it is the communication of these with its main address, containing a CryptoPunk, which will have betrayed him.

This affair had pushed OpenSea to enjoin its employee to resign, which he did.

Damian Williams, United States Attorney for the Southern District of New York, clarified that while NFTs are new, insider trading is not. These are by the way far from being the prerogative of our ecosystem.

However, this is not the first time that the community reveals such practices using public blockchain data. Last April, a crypto influencer had actually noted the suspicious activity of an address, which would have benefited in advance from information on possible Coinbase listing additions.

These events remind us that while cryptocurrencies are regularly hyped about money laundering, reality shows that the public environment makes this practice unwise.

👉 Also in the news – Layer 2 of Ethereum (ETH) Immutable (IMX) offers to host the BAYC metaverse

Source: United States Department of Justice

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About the Author : Vincent Mayor

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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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