Former OpenSea Manager Retracts Bail Application Pending Appeal
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In Brief
Nathaniel Chastain, a former NFT marketplace OpenSea manager, has been sentenced to three months in prison for insider trading related to non-fungible tokens. Â
Chastain has decided to serve his sentence while his appeal is pending. On September 6, his legal team submitted a letter to the New York District Court, officially withdrawing the application for bail pending appeal.
Nathaniel Chastain, NFT marketplace OpenSea’s former manager, has been sentenced to three months in prison for insider trading related to non-fungible tokens. Â
Chastain has decided to serve his sentence while his appeal is pending. On September 6, his legal team submitted a letter to the New York District Court, officially withdrawing the application for bail pending appeal. The former manager’s attorneys informed the court that he will self-surrender on November 2 to begin his prison term.
The decision stems from Chastain’s conviction on May 3, where he faced charges of wire fraud and money laundering.
Subsequently, on August 22, he received a three-month prison sentence for offenses tied to insider trading on OpenSea, along with a $50,000 fine and the requirement to forfeit any gains he acquired from trading on the platform.
Notably, the charges against Chastain were classified by the Department of Justice as the “first-ever digital asset insider trading scheme.”
OpenSea fired Chastain in September 2021. After that, he started working on a new NFT platform called Oval.
It’s worth noting that Chastain’s role as a former OpenSea product manager gave him significant control over which NFTs and collections were featured on the platform’s homepage. This potentially influenced their value and visibility.
Insider trading is a recurring issue within the NFT space. Specific influential community members might possess more information than other users. In addition, it’s common for influential figures in the industry to partner with non-fungible token projects and promote them. When the price experiences a substantial surge, these influencers often “dump” their tokens, selling them for considerably higher prices than when the project initially launched.
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Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related.Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities.You can contact her at [email protected]
More articlesValeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related.Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities.You can contact her at [email protected]
