Non-fungible token (NFT) marketplace of OpenSea former product manager Nate Chastain filed a petition early Monday regarding the company’s “insider trading” lawsuit.
Chastain asked the US court to dismiss insider trading charges involving the sale of NFTs on OpenSea.
Chastain’s lawyers are in charge of the NFT transactions in question. Ethereum He said it was carried out on his blockchain. Lawyers argued that given the open source nature and public viewability of this blockchain, transactions cannot be used for money laundering.
“NFTs Are Neither Securities nor Commodities”
In their petition to dismiss the indictment, Chastain’s lawyers stated that “the US government initiated the current prosecution using unfounded practices of criminal law to set precedent in the digital asset space.”
Lawyers for the defendant argue in the petition that NFTs are neither securities nor commodities and that electronic fraud cases require trading in securities or commodities.
In June, the US Department of Justice (DOJ) accused Nathaniel Chastain of participating in electronic fraud and money laundering charges relating to NFTs sold on OpenSea, the world’s largest NFT marketplace.
Chastain Leaked Assets to be Listed on OpenSea
The charges alleged that Chastain defrauded OpenSea by using his knowledge of which NFTs to offer on the platform’s homepage, buying assets before they appear and then selling them at a profit.
The US Department of Justice called Chastain’s activities “the first digital asset insider trading scheme ever.”
Chastain resigned from OpenSea in September 2021. Since then, he has started working on his new NFT platform, Oval, which he describes as a “personalized platform for NFT accumulating.”
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!