Feds Charge Ex-OpenSea Worker With Insider Trading Of NFTs

By Elise Hansen (June 1, 2022, 2:38 PM EDT) — A former manager at leading nonfungible token platform OpenSea has been criminally charged in an alleged insider trading scheme, a first for the digital-asset industry, federal prosecutors said Wednesday.

Nathaniel Chastain used confidential information about which nonfungible tokens, or NFTs, would be displayed on OpenSea’s home page to flip the tokens for a profit, prosecutors said in an indictment unsealed Wednesday.

NFTs are digital assets that convey ownership of an item. They exploded in popularity last year as a way to buy and sell digital art, music and memorabilia, and OpenSea is among the largest marketplaces specializing in NFTs.

“In violation…

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