Security News > 2022 > June > Former OpenSea head of product charged with NFT insider trading
Nathaniel Chastain, a former product manager at OpenSea, the largest online non-fungible token marketplace, has been arrested and charged by the U.S. Department of Justice with NFT insider trading.
This is the first time someone was charged for their involvement in what the DOJ describes as a "Digital Asset Insider Trading Scheme."
Chastain is accused of allegedly using confidential business information he had access to as a former OpenSea employee and exploiting it to buy around 45 NFTs before they would be added to the marketplace's front page.
"From at least in or about June 2021 to at least in or about September 2021, CHASTAIN used OpenSea's confidential business information about what NFTs were going to be featured on its homepage to secretly purchase dozens of NFTs shortly before they were featured," the DOJ said.
Former employee of NFT marketplace charged in first ever digital asset insider trading schemehttps://t.
"NFTs might be new, but this type of criminal scheme is not. As alleged, Nathaniel Chastain betrayed OpenSea by using its confidential business information to make money for himself," U.S. Attorney Damian Williams said.