Former OpenSea Executive Petitions to Drop Insider Trading Case

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A former product manager at the world's largest non-fungible token marketplace, OpenSea, has filed a petition with the US Department of Justice.

Nathaniel Chastainclaims that the insider trading case against him has no legal basis because non-fungible tokens (NFTs) are not considered securities or commodities. Therefore, the top manager cannot be accused of fraud.

Lawyers for the former OpenSea employee note thatthat the basic view of insider trading requirements based on Carpenter v. United States emphasizes the need for securities or goods to be available for a wire fraud charge.

“In any prosecution on the theoryinsider trading fraud, the fact of trading in securities or commodities is considered an essential element of the crime,” the petition states.

In June, the Ministry of Justice presented
Chastain indictment, which said that the formeran OpenSea employee used inside information to trade NFTs that were to be listed on the marketplace. If the former top manager goes on trial on charges of insider trading in crypto assets, then Chastain faces up to 40 years in prison on the totality of the charges.