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Former product manager of NFT marketplace OpenSea, Nathaniel Chastain, has filed a motion to dismiss the DOJ’s insider trading lawsuit against him. court document.
In a filing filed Monday, Chastain argues that the lawsuit against him will not stand because non-fungible tokens or NFTs are not considered securities or commodities. cannot face DOJ wire fraud charges.
This motion was filed in the United States District Court for the Southern District of New York.
As noted, Chastain’s legal argument for dismissal rests on the following: Carpenter v. United States, 484 US. 19 (1987) Carpenter’s Wire Fraud Theory.
The legal team of former OpenSea executives has taken note of the basic view of insider trading requirements under Carpenter v. United States, highlighting the need for securities or commodities facing one person facing wire fraud charges. increase.
His lawyer said the government’s position on the matter was “Carpenter’s incomplete understanding [theory]
“In prosecutions based on Carpenter’s wire fraud theory of insider trading, the existence of securities or commodity trading remains a key element of the crime. reads Motion.
According to Chastain’s legal team, the whole matter was “The purpose of the Carpenter decision is not only to prevent the misappropriation of classified information in breach of duty to the source of the classified information, but importantly, to protect the financial markets.
Department of Justice Paid In June, Chastain called the allegations against him “the first-ever digital asset trading scheme.” The charges say the former OpenSea staff used insider information to trade his NFTs set to be listed on major exchanges.
The U.S. Securities and Exchange Commission (SEC) also recently indicted a former Coinbase employee and two others for insider trading.
