Former OpenSea executive sentenced to three months in prison for insider trading

The court sentenced the former Director of Product NFT-marketplace OpenSea Nathaniel Chestein to three months in prison and a $50,000 fine for insider trading.

“He committed the crime for the first time. There are mitigating circumstances. He has a potentially promising future,” the judge said.

According to the order, Chestein is required to surrender to prison on November 2. However, the defendant’s lawyers requested his release on bail pending appeal.

Prosecutors had sought 21 to 27 months in prison, but the defense argued that the defendant had lost his reputation, his job, and a stake in OpenSea worth millions of dollars.

After serving the principal sentence, Chestein will receive a three-year suspended sentence. In addition, the court will forfeit the ETH earned from the illicit trading.

The ex-OpenSea manager was arrested on June 1, 2022 on suspicion of wire fraud and money laundering. He denied all charges, but in May 2023 the court found him guilty.

Chestein was accused of buying NFTs that he later listed on the marketplace’s site, earning more than $50,000 from their sale.

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

In May, the court sentenced former Coinbase product manager Ishan Wahi to two years in prison for insider trading.