Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
DOJ: NFT Marketplace ex-Employee Charged with Insider Trading
US Department of Justice | June 1, 2022
A former employee of OpenSea, the world’s largest NFT marketplace, was charged with insider trading in the first-ever such case involving digital assets, U.S. prosecutors in New York said Wednesday.
This case concerns insider trading in NFTs on OpenSea, the largest online marketplace for the purchase and sale of NFTs. In violation of the duties of trust and confidence he owed to his employer, OpenSea, CHASTAIN exploited his advanced knowledge of what NFTs would be featured on OpenSea’s homepage for his personal financial gain.
See: Crypto Pragmatist: Checkout these free crypto (trading) tools
Nathaniel Chastain, 31, a former product manager at OpenSea was arrested by the FBI on wire-fraud and money-laundering charges, according to Damian Williams, the U.S. Attorney for the Southern District of New York.
U.S. Attorney Damian Williams said: “NFTs might be new, but this type of criminal scheme is not. 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.”
See: What do you mean NFTs can now by cloned by ‘Mimics’?
FBI Assistant Director-in-Charge Michael J. Driscoll said:
In this case, as alleged, Chastain launched an age-old scheme to commit insider trading by using his knowledge of confidential information to purchase dozens of NFTs in advance of them being featured on OpenSea’s homepage. With the emergence of any new investment tool, such as blockchain supported non-fungible tokens, there are those who will exploit vulnerabilities for their own gain. The FBI will continue to aggressively pursue actors who choose to manipulate the market in this way.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Support NCFA by Following us on Twitter!Follow @NCFACanada  |
Related Posts
[CIX Digital Summit Oct 27-28]: 10 AWESOME REASONS TO BE AT CIX THIS WEEK!- Jeff Musson, President of Dynamite Network Joins National Crowdfunding Association of Canada Advisory Board
- End of China’s Fintech Crackdown Could Revive Investor Confidence
- Central Bank Digital Currencies on the Rise: 15 Retail CBDCs by 2030
- Some New Banking Rules Implemented to Protect Consumers in Canada
- How to Make an NFT
Leave a Reply