OpenSea Chief Says Former Employee Did Not Engage in Insider Trading

OpenSea CEO Devin Finzer told Decrypt that the actions of the marketplace’s fired employee were mischaracterized as insider trading.

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\”We do not regard NFTs as financial assets, so this does not fit. It is a very specific term for a very particular activity,\” he explained.

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Earlier OpenSea fired an employee implicated in insider trading. The name is not directly mentioned in the press release. In the crypto community, product director Nate Chastain was suspected of wrongdoing.

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According to a ruling by the U.S. Securities and Exchange Commission, insider trading is the purchase or sale of securities based on confidential information about the issuer.

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Finzer acknowledged that while the actions of the former OpenSea employee do not fall under this definition, they could undermine customers’ trust in the platform.

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\”It was a mistake by an employee. We took action, and he left the company. We will tighten the rules for OpenSea employees who want to trade on the NFT market,\” the CEO explained.

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In August, the NFT trading volume on OpenSea exceeded $3 billion.

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In September, the marketplace’s error led to the destruction of 42 NFTs worth $100,000.

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