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Lawyers for former OpenSea’s head of products, Nathaniel Chastain, have filed an appeal against the indictment against him.
In June, a jury found him guilty of fraud and money laundering in a scheme with insider trading on the marketplace.
According to the conclusion, Chastain pre-purchased tokens using anonymous wallets and OpenSea accounts. Between June and September 2021, the top manager sold these works two to five times the purchase price.
In the petition, the lawyers stressed that fraud using the Internet is associated with securities and goods. However, NFTs are neither, they added.
Lawyers also argue that the authorities are not able to confirm the interpretation of crypto transactions as financial in accordance with the rules for combating money laundering.
“The government initiated the prosecution using the unjustified application of criminal law to set a precedent in the field of digital assets,” — experts concluded.
Recall that in September 2021, OpenSea broke off labor relations with an unnamed employee involved in insider trading. This moment coincided with the departure from the company of Chastain, who was suspected of fraud. He was arrested on June 1, 2022.
Earlier, Huobi accused the ex-employee of illegal trade. According to media reports, he allegedly created a retail trading account in the name of his father and provided a credit line of $ 20 million from the exchange for subsequent trading.
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