The employee of OpenSea, who was found to be trading NFT with confidential information last year, was arrested by the FBI today. Employee Nate Chastain was charged with fraud and money laundering.
Announcing its name all over the world as it suddenly became a billion-dollar industry in 2021. NFT technology has also hosted many fraud and opportunistic events. Today, US Department of Justice With the press release shared by the company, a new one has been added to these fraud events.
The US Department of Justice announced that the former product manager of OpenSea, the largest NFT marketplace, was arrested by the FBI yesterday morning. Former director named Nate Chastain for using the NFT information within the company for commercial purposes. accused of fraud and money laundering. Chastain used his knowledge of OpenSea and NFTs to personally monetize.
“It was selling NFTs at at least double the profit”
According to the statement shared by the ministry, Chastain has announced that which NFTs will be featured in OpenSea. buys these NFTs using internal confidential information, then it would sell for many times over its original value. Moreover, Chastain not only knew which NFTs would be featured, but he could also choose which NFTs would be featured.
Chastain planned this cunning plan between June and September of last year. Using 7 different anonymous crypto wallets put into effect. Chastain bought dozens of NFTs and all of them at least double the profit determined to be sold. Upon Chastain’s arrest, a statement came from OpenSea:
“As the world’s leading web3 marketplace for NFTs, trust and integrity are at the core of everything we do. When we learned of Nate’s behavior, we launched an investigation and eventually asked him to leave the company. His behavior violated our employment policies and directly contradicted our core values and principles.”
OpenSea fired anonymously
Last September, OpenSea issued a statement banning its team members from buying and selling items from featured collections on the site and using confidential information for NFT trading. In a statement shared by the founder of the platform, Devin Finzer, “We learned yesterday that one of our employees purchased digital assets that they knew would hit the homepage before they went public.” he said. The person in question in this statement is Nate Chastain. finalized today.
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