US Authorities Accuse Former OpenSea Manager of Insider Trading

Former OpenSea product director Nate Chastain has been accused of wire fraud and money laundering in an insider trading scheme on the popular NFT marketplace.

Chastain was arrested on June 1 and could face up to 40 years in prison.

The case will be heard by the US District Court for the Southern District of New York.

The indictment by Attorney Damian Williams and New York FBI Assistant Director Michael J. Driscoll allege this is the first ever insider trading scheme involving digital assets.

In September last year, OpenSea terminated its employment relationship with an unnamed employee involved in insider trading. This moment coincided with the departure from the company of Chastain, who was suspected of fraud.

He allegedly used information about the placement of tokens for his own benefit.