OpenSea manager accused of insider trading sentenced to 3 months in prison, $50K fine

A national justice has sentenced erstwhile nonfungible token (NFT) marketplace OpenSea merchandise manager Nathaniel Chastain to 3 months successful situation for ligament fraud and wealth laundering related to insider trading connected the platform.

In an Aug. 22 announcement from the United States Department of Justice, U.S. Attorney Damian Williams said Chastain had been sentenced to 3 months successful prison, 3 months of location confinement, and 3 years of supervised merchandise successful summation to being ordered to wage a $50,000 good and forfeit ill-gotten Ether (ETH) from the NFT trades. Inner City Press reported helium would beryllium required to surrender himself connected Nov. 2, with Chastain's lawyers readying to entreaty the determination and petition bail.

“Respect for the instrumentality and wide deterrence militate for punishment,” reportedly said the justice astatine sentencing. “But [Chastain] is simply a archetypal clip offender. There are mitigating circumstances. He has a perchance promising future.”

OK- adjacent extremity of sentencing successful US v Nate Chastain, described arsenic 1st "NFT insider trading" case. But loss/gain magnitude is little than $50,000, defence lawyer Miller (who besides repped Wahi) says. Judge has taken 5 infinitesimal interruption earlier announcing sentence. Watch this provender pic.twitter.com/KyeScdCGAP

Chastain, accused of utilizing insider accusation successful his presumption astatine OpenSea to nett disconnected the trading of NFTs, was convicted by a jury connected May 3 of ligament fraud and wealth laundering. In his presumption arsenic merchandise manager, helium had the authorization to take which NFTs would beryllium featured connected the OpenSea website. He purchased 45 NFTs anterior to them being featured and past resold them.

An Aug. 22 bid from Judge Jesse Furman stated the tribunal would see whether Chastain would beryllium required to forfeit immoderate ETH from the insider trading strategy oregon the U.S. dollar equivalent. The sentencing apt marked the decision of the lawsuit pursuing Chastain being charged and arrested by U.S. authorities successful June 2022.

Related: SEC settles lawsuit against Wahi brothers for Coinbase insider trading

In a abstracted case, erstwhile Coinbase merchandise manager Ishan Wahi was sentenced to 2 years successful prison successful May for utilizing confidential accusation astatine the crypto speech to nett disconnected caller token listings. His member Nikhil and subordinate Sameer Ramani were besides charged successful the aforesaid lawsuit for their engagement successful the scheme, with the erstwhile pleading blameworthy successful September 2022 and being sentenced to 10 months successful prison. At the clip of publication, Ramani was inactive astatine large.

Magazine: Powers On… Insider trading with crypto is targeted — Finally! Part 1