OpenSea Manager Fined $50,000 And Given A Three-Month Prison Sentence For Insider Trading

According to reports, Nathaniel Chastain will have until November 2 to present himself after being found guilty of wire fraud as well as money laundering in connection with the trading of insiders on OpenSea.

Source: www.marketscreener.com

Former OpenSea product director Nathaniel Chastain was given a three-month prison term for money laundering and wire fraud connected to insider trading on the trading platform. U.S. Attorney Damian Williams stated in a statement on August 22 that Chastain had been given a sentence of three months in jail, three months of home detention, and three years of probation in addition to being required to pay a $50,000 fine and give up any illegal-gotten Ethereum obtained through nonfungible token (NFT) trades. Inner City Press reports clearly shows that Chastain would have to turn himself in on November 2; however, his attorneys intended to file an appeal and ask for bail.

Reports state that the court noted during the sentence that respect for the law and generally discouraged behavior militate for punishment. But Chastain has never committed a crime before. There are compensating factors. On May 3, a jury found Chastain guilty of wire fraud as well as money laundering after he was accused of utilizing insider information while working for OpenSea to profit from the trading of NFTs. He had the power as product manager to decide which NFTs would be displayed on the OpenSea website. Before they were showcased, he bought 45 NFTs and then sold them.

Judge Jesse Furman on Aug. 22 ruling represents, the court would decide whether Chastain would have to give up any ETH through the insider trading scam or its equivalent in US dollars. After Chastain was accused and detained by American officials in June 2022, the sentencing most likely signaled the end of the case. The first NFT insider trade case, US v. Nate Chastain, is said to be nearing the completion of sentencing. However, defense attorney Miller (who also represented Wahi) claims that the loss/gain number is less than $50,000. Before announcing the sentence, the judge took a five minute pause. 

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.