Former OpenSea manager’s insider trading conviction overturned

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—by Protos Staff

Former OpenSea product manager Nathaniel Chastain had his convictions for wire fraud and money laundering overturned in the 2nd US Circuit Court of Appeals today.

Chastain had been convicted in what the United States Attorney’s Office in the Southern District of New York called the “First-Ever Digital Asset Insider Trading Scheme.”

He had taken advantage of his position and his knowledge about what non-fungible tokens (NFTs) would be featured on the home page of OpenSea, purchasing them before they were listed, and then selling them after the artist was featured.

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The reason this appeal was successful centers around jury instruction; specifically, the jury was told it could convict him of acting unethically, whereas lawyers for Chastain have maintained the fraud charge required him to violate a property interest of OpenSea.

Chastain’s case has been remanded back to the Southern District of New York, and it could possibly choose to try him again.

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