U.S. prosecutors will square off this week against a former employee of OpenSea, the world's largest marketplace for non-fungible tokens (NFTs), whom they accuse of insider trading.
The charges against Nathaniel Chastain, a former OpenSea product manager, were the first in a series of high-profile cases related to digital assets launched by the Manhattan U.S. Attorney's office last year. It is considered the first criminal insider trading case involving such assets.Chastain of secretly buying dozens of NFTs based on confidential information that the tokens, or others from the same creators, would soon be featured on OpenSea's home page.
Chastain's lawyers have argued that his actions were not insider trading, and that the information he accessed was not OpenSea's property and had no inherent value to the company. He added that if prosecutors mention insider trading, "there is a substantial danger of undue prejudice and confusion of the jury."
Its new policies "tend to show that OpenSea did not consider - or treat - the relevant information to be confidential" while Chastain worked there, Miller said in an April 17 filing.
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