OpenSea’s former product manager has been accused of insider trading allegations for some time.
Indicted former director Nathaniel Chastain has been jailed on insider trading charges based on NFTs. The court sentenced him to 50 thousand dollars in prison and 3 months in prison.
Former product manager of OpenSea jailed
Nathaniel Chastain, former product manager of OpenSea, has been jailed for insider trading charges based on NFTs. The court sentenced Chastain to three months in prison and a $50,000 fine. A judge in the US District Court for the Southern District of New York stated that Chastain was “a first-time criminal” and had a “potentially promising future”.
Chastain was convicted in May on NFT insider trading charges. It was alleged that he used confidential information about which NFTs would appear on OpenSea’s homepage in order to earn him money. OpenSea is a major online platform that enables trading of NFTs.
Chastain used to work at OpenSea in a position responsible for secretly selecting NFTs to be featured on the homepage. The Justice Department claimed that Chastain used this confidential information to pre-purchase NFTs and make a profit at a time when their prices were soaring.
OpenSea CEO Devin Finzer announced in a blog post in September 2022 that Chastain had been asked to resign. The event once again highlighted the importance of transparency and honesty in the crypto and NFT market.
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