Court finds former OpenSea product director guilty of insider trading

Former product director of the NFT-marketplace OpenSea, Nathaniel Chastain, has been found guilty of insider trading. Reuters reports.

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He was arrested on June 1, 2022, on suspicion of wire fraud and money laundering. Chastain pleaded not guilty.

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"He abused his position at OpenSea to line his own pockets, and lied to cover his tracks," the prosecutor said.

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Chastain was charged with purchasing NFTs that he subsequently listed on the marketplace’s site, earning more than $50,000 from their sale. The prosecution said he used anonymous accounts to carry out illegal trades.

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Efforts by Chastain’s legal team to dismiss the suit or drop the fraud charges were unsuccessful.

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Earlier in April, New York law enforcement detained former JPMorgan and Deutsche Bank broker Rashona Russell on suspicion of digital-asset fraud.