Former OpenSea exec claims insider trading laws cannot apply to NFTs

Former OpenSea maritime executive Nate Chastain said: submitted A motion asking the United States District Court to dismiss the insider trading charges brought against him. Non-fungible tokens (NFTs) do not meet the wire fraud charges.

quoting carpenter wire scam In theory, Chastain’s attorneys argued that NFTs are neither securities nor commodities, and that the government cannot apply insider trading laws. Recognized them as “digital artwork” and issues.

In defending money laundering accusations against Chastain, his attorney argued that the transparent nature of the Ethereum blockchain renders the accusations unnecessary. I can do it.

Possibility of 20 years in prison

Following insider trading accusations, Chastain is dismissed from his role at OpenSea and must face a legal battle. 20 years prison sentence if found guilty.

U.S. Department of Justice (DOJ) arrested Chastain in June accused him of exploiting insider information from OpenSea’s collection of NFTs to trade dozens of NFTs featured on its homepage.

unclear regulation

Chastain’s arrest was the first in the cryptocurrency industry for insider trading.More parties have been indicted since then, including a former Coinbase manager Ishan Wahi.

Ishan Suspicion of leaking information about assets scheduled to be listed on Coinbase to friends and family He used an Ethereum-based wallet to acquire crypto assets and sell them after a successful listing.

Defendants are said to have made approximately $1.5 million in profits from their illegal activities.

Like Chastain, Ishan used similar arguments in his defense, arguing that US laws on insider trading do not apply to cryptocurrencies.

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