NFT Insider Trading Case Rescues: Former OpenSea Manager Convicted Of Guilty Of Money Laundering Allegations

JAKARTA - A former manager at OpenSea, Nathaniel Chastain, was found guilty by a jury on charges of wire fraud and money laundering on Wednesday, May 3. This is a case considered the world's first insider trading charge, with broad implications for the industry.

Chastain pleaded not guilty, and the industrial world is paying close attention to the outcome of this trial. He was charged with wire fraud and money laundering by the Department of Justice in June 2022.

According to FBI's Michael Total in a statement last year, Chastain allegedly earned more than USD 50.000 (IDR 731 million) by "using his knowledge of classified information to buy dozens of NFTs before appearing on the OpenSea homepage."

Reuters reported that prosecutor Thomas Burnett in the closing argument said that Chastain "failed" his status at OpenSea and violated the company's confidentiality agreement.

Chastain's lawyer, Daniel Filor, argues that his client did not violate the company's rules in the trade. Before the trial began, OpenSea CEO told prosecutors the case was "unfair" and affected his mental health, according to court documents.

OpenSea has also taken steps to prevent similar events in the future. They asked Chastain to step down in September 2021, arguing that he "violates employee policies and goes against the company's core values and principles."

Chastain has submitted five requests to reject evidence related to compensation at OpenSea and excluded terms such as insider trading - arguing that NFT is not a security. However, Judge Jesse Furman rejected the request and said insider trading Chastain's argument was "unrelevant" in April.