The DoJ accuses the former product manager of Open Sea to buy NFT at low cost before they were officially put up for sale on the platform, which is a crime under current law.
- Nathanial Chastain, former product manager for OpenSea, You will have to face the charges against you.
- He is accused of using privileged information and acquiring NFT at a low cost.
- The community denounced it at the time and Open Sea He apologized publicly.
- Chastain faces a maximum sentence of 20 years in prison.
The US Department of Justice (DoJ) filed an indictment Wednesday against Nathanial (Nate) Chastain, who operated as a former product manager for OpenSea, which they point out for privileged information trafficking and use of it to acquire digital collectibles at low cost.
former member of Open Sea will face legal charges in the US
This is how he revealed DoJ in a document published through its website, where it indicates that Chastain used his privileged position to buy dozens of NFT before these were officially released for sale through OpenSea. He subsequently sold them at premium prices and capitalized on profits ranging from 200% to 600% on the original purchase price.
Regarding the modus operandi, the DoJ He explained that Chastain made use of anonymous accounts and external wallets to carry out commercial operations, with which he managed to get hold of up to 45 NFT of well-known collections between June and September of last year 2021. The actions of the former product manager of Open Sea they incur in open crimes punishable by the laws in force.
On the charges against and the trade in digital collectibles, the federal prosecutor in charge of the case, Damian Williams, indicated that “While NFTs may be something new, these types of criminal acts are not”. Therefore, he pointed out that Chastain made use of privileged information for his own benefit, something that would have the same legal weight if it occurs in the stock market or within the sector. blockchain.
The community denounced Chastain at the time
Let us bear in mind that Chastain’s actions were denounced by the community of users and followers in September 2021, for which they presented evidence of the transactions carried out by the team member while working for OpenSea.
The controversy escalated to the point that the team of Open Sea confirmed the allegations made by Twitter, which implied the resignation of Chastain and a public apology by the platform’s staff, who said in a statement the following:
“Yesterday we learned that one of our employees purchased items that he knew were set to be available on our home page before they were publicly listed there. This is incredibly disappointing. We want to make it clear that this behavior does not represent our values as a team. We are taking this very seriously and are conducting an immediate and thorough review of this incident to better understand the facts as well as what actions we need to take.”
At the time, the members of the community who denounced Chastain’s acts highlighted the gall on the part of the member of OpenSea, since it came to publicly share information about digital goods acquired ahead of time. In early August 2021, he bought a NFT from a collection by artist Arya Mularama before its public release. And to justify such action she wrote:
“I just wanted to get one of these before they all disappeared tbh”
The case continues
The case is currently being handled by the Securities and Commodity Fraud Task Force, this with the help of National Cryptocurrency Compliance Team.
According to DoJ, the charges for which Chastain has been singled out carry a maximum sentence of 20 years in prison.
Angel Di Matteo version / DailyBitcoin
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