Summary
- The U.S. Government has taken the initiative of sentencing Chastain to three months in prison after taking part in insider NFT trading.
- Chastain had access to Opensea’s NFT database and he was able to buy non-fungible tokens that had not been released into the market.
- He will be facing three other consequences as highlighted in the article below.
- Open Sea will be revising the employment structure of the firm after this incident.
Chastain Trades NFTs That Are Yet To Be Released From OpenSea
Chastain is the former manager at OpenSea. He has been detained for having acquired information on the incoming non-fungible tokens which he used for his financial gains.
The U.S. prosecutors have warned institutional traders that such deeds will not be tolerated and that Chastain’s sentence just goes to show. Chastain got access to Opensea’s market insights and using this information, he went ahead and bought NFTs before they were featured.
Through this act, he managed to earn more than 50,000$. Burnett, a prosecutor in a court that took place in May, said that he lied to ensure his acts would not be traced back to him. A user named Zuwu on X (formerly Twitter) asked Opensea the reason why Nathaniel Chastain had NFTs that had not been featured in the market yet.
The Opensea finally released a statement acknowledging Chastain’s acts and will be restructuring its firm.
Additional Charges Imposed On Chastain
This is the first-ever attempt at insider trading in the market. Following his detention, other measures that will be put in place include:
- House detention for 3 months
- Supervision for 3 years after the release
- Forfeit of Ethereum made while trading the NFTs.
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