Former OpenSea product chief Nathaniel Chastain was reportedly sentenced to three months in prison by a New York US district judge. The decision came after a jury voted to find the man guilty of money laundering and wire fraud while also serving as one of the top officials of the world’s largest online marketplace for non-fungible tokens (NFTs). NFTs are blockchain-based digital collectibles inspired by games, artwork, or fictional characters. NFT has price value and uniqueness, which can help users in virtual ecosystems such as metaverse games, and act as assets for liquidation when needed.
OpenSea’s Chastain used to finalize which NFTs would appear on the marketplace’s main page. Investigations revealed that the 33-year-old managed to earn more than $50,000 (approximately Rs. 4.1 lakh) by buying and selling at least 45 NFTs, which he knew were bound to appear on the OpenSea homepage. Report CoinTelegraph said.
The court not only sentenced Chastain to jail, but also directed him to pay a fine of $50,000 (approximately Rs. 4.1 million).
Well — the verdict is drawing to a close in United States v. Nate Chastain, dubbed the first “NFT insider trading” case. But defense attorney Miller, who also represents Vash, said the loss/gain amounted to less than $50,000. The judge took a 5-minute break before delivering the verdict.watch this feed pic.twitter.com/KyeScdCGAP
— Inner City Press (@innercitypress) August 22, 2023
how the case unfolded
In September 2021, some members of the crypto community on Twitter began pointing out Chastain’s possible involvement in OpenSea’s insider trading after several NFT-related digital wallets were suspiciously traced back to Chastain.
Hey @waihai why does it appear @natechastain Some secret wallet that seems to buy your front page drops before they hit the market, then sell them for a profit shortly after the front page hype spikes, then roll them back into his main wallet with his punk?
— Zuwu (@0xZuwu) September 14, 2021
In response to the allegations, OpenSea issued a statement saying the company was disappointed by the disclosures. OpenSea asked Chastain to resign from the company after the company’s internal audit found that Chastain was taking advantage of the opportunity to obtain details inside the company and illegally trade NFTs. report then.
Last year, the U.S. Department of Justice (DoJ) arrested Chastain said the case was the first ever insider trading incident involving digital assets.
With the verdict finally coming in, Chastain’s lawyers argue that media coverage of the case sends a message to other would-be criminals who want to engage in such activities.
As for Chastain, upon his release he will spend the next three months on home confinement and supervised for the next three years.
The now-convicted OpenSea executive also apologized for disappointing the NFT community.
“I stand here today because two years ago I let down the community I served and couldn’t see the person I aspired to be. I’m sorry to put my colleagues and friends at OpenSea through this ordeal.” lead As mentioned.
Back in May, former Coinbase Global product manager Ishan Wahi pleaded guilty to criminal charges that he disclosed confidential information about digital assets to be listed on Coinbase to his brother Nikhil Wahi and a friend.
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