The FBI arrested Nate Chastain, former Head of Product at OpenSea, for his insider trading scheme. The decision comes 8 months after the giant marketplace acknowledged Chastain’s illegal actions. Thereby, the former employee might face up to 20 years in prison. In fact, this is the first time the FBI takes action in an NFT-related insider trading scheme.
Why did the FBI arrest Nate Chastain?
On June 1st, the New York’s Department of Justice confirmed its conviction of Nate Chastain in the OpenSea case. Accordingly, the FBI charges the former employee with money laundering and wire fraud.
The decision comes about 8 months since OpenSea discovered Chastain’s insider trading scheme.
“NFTs might be new, but this type of criminal scheme is not,” said US Attorney Damian Williams. “As alleged, Nathaniel Chastain betrayed OpenSea by using its confidential business information to make money for himself. Today’s charges demonstrate the commitment of this Office to stamping out insider trading – whether it occurs on the stock market or the blockchain.”’
This marks the first time the FBI charges an employee of an NFT-related insider trading scheme. Based on the accusations, Nate Chastain might fac up to 20 years in prison for each of his charges.
