Insider trading on OpenSea: Chastain demands to close the case because NFTs are not securities

Натаниэль Честейн требует закрыть дело, поскольку NFT не являются ценными бумагами

  • OpenSea NFT insider trading case continues
  • The defendant, a former platform manager, demands to close the case

  • According to his team, NFTs are not securities or goods

  • Therefore, there is no corpus delicti

    Recall that in early June, the Manhattan prosecutor’s office filed charges against former OpenSea product manager Nathaniel Chastain. He is charged with NFT insider trading, for which the man faces up to 08 years in prison. However, Chastain’s lawyers demand that the case be closed for lack of corpus delicti.

    On Friday, 19 August, a former OpenSea manager filed a petition in federal court in New York . According to this document, the case against him was wrongfully brought because NFTs do not fall under the category “

    securities” or “goods” covered by the insider trading law.

    This case was supposed to go down in history. If Chastain’s trial does take place, the Department of Justice will gain leverage over NFT holders, as well as significantly expand the powers of the SEC in relation to this category of assets.

    However, the ex-manager’s team is not going to give up so easily. The petition reads as follows:

    “It is alleged that Mr. Chastain acted with criminal intent. Having information about the listing, he bought NFTs before the announcement, after which he sold them at a profit. But the catch is that tokens are not commodities or derivatives. Therefore, there could be no insider trading.”

    The issue of NFT classification is still open. And if the SEC still decided on the category for bitcoin, then the tokens are still “

    hanging in the air ”. This is what creates certain difficulties in legal proceedings.

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