Former OpenSea Manager Goes to Prison for 3 Months for Insider Trading

Nathaniel Chastain – former head of product at the NFT marketplace OpenSea – will spend three months in jail after being found guilty of insider trading. Prosecutors maintained that he bought numerous non-fungible tokens before they were featured on the platform’s home page and later sold them at much higher prices. 

Chastain maintained he was not guilty of the accusations that he conducted wire fraud since the NFTs were not securities or commodities. US District Judge Jesse Furman dismissed that claim, asserting that the law doesn’t require trading in such financial products for it to be a fraud.