New York District Court, former OpenSea Director Nate Chastainthe first hearing of the case against April 24performed in.
With inside information NFTallegations against Nate Chastain, accused of fraudulent trading, May 31, 2022on US Manhattan Attorney General presented by In this context, Chastain is charged with two different crimes: phone fraud and money laundering.
Moustakis: Could Set a Precedent
US Manhattan Attorney Generalreport prepared by NFT The Brawl 2cites various examples of abuse, such as the case of
The report claims that Chastain bought NFTs purchased through anonymous accounts minutes before they were available for sale on OpenSea, and sold 100 percent on the card within a few hours.
Chastain’s advocates petitioned in October 2022 to be cleared of insider trading charges, but the attempt was unsuccessful. At the time, Chastain said it was provocative to use the term insider trading to describe the alleged charges. Chastain argued that this statement applies only to securities.
The outcome of the trial could have a major impact on the legal classification of NFTs, as the term insider trading was not used in relation to cryptocurrencies or NFTs prior to Chastain’s accusations.
Former SEC employee Philip Moustakis“If this lawsuit continues, it will set a precedent that insider trading theory can be applied to any asset class,” he told Reuters.
