The ex-executive from OpenSea, who has been charged with NFT insider trading, has filed a motion to have the case thrown out.
Nate Chastain has requested the U.S. court to dismiss the charges brought against him. insider trading charges These charges stem from NFT transactions conducted on the leading platform for NFTs worldwide.
In his court submission made in New York, Chastain argues that NFTs should not be classified as securities or commodities, which is a key element needed for wire fraud allegations to hold. His defense insists that insider trading, as defined legally, did not take place.
“In any prosecution under a Carpenter wire fraud theory His legal team cited a prior decision from the U.S. Supreme Court affirming that the existence of either securities or commodities trading is crucial for proving insider trading.
Back in June, the FBI and the Department of Justice apprehended Chastain, charging him with wire fraud and money laundering, alleging that he utilized confidential trading information on NFTs on OpenSea. Specifically, he allegedly purchased NFTs before they were publicly listed and then resold them for a profit.
Chastain’s attorneys further contended that his NFT transactions were carried out on the Ethereum blockchain, which is inherently open-source and public. This transparency makes it virtually impossible to use the blockchain for illicit money laundering activities.
The Department of Justice referred to this case as the pioneering instance of an insider trading scheme involving digital assets.
The charges against Chastain are classified Both the wire fraud and money laundering counts carry severe penalties, potentially leading to 20 years behind bars.
Chastain departed from OpenSea in September 2021 and has since been involved in launching a new NFT platform called Oval.
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In line with the Trust Project guidelines Agne is a journalist dedicated to exploring the latest in the metaverse, AI, and Web3 sectors for Metaverse Post. With a passion for storytelling, she has engaged in many interviews with industry experts, always on the lookout for captivating narratives. Graduating with a Bachelor’s degree in literature, she has a robust writing history covering diverse topics from travel and culture to art. Additionally, she has volunteered as an editor for an animal rights organization, fostering awareness about animal welfare. You can get in touch with her at
