The former head of product at OpenSea, Nathaniel Chastain, will face trial on April 24th for wire fraud and money laundering charges. In October 2022, authorities indicted Chastain for allegedly making illegal profits from NFT sales in 2021. He allegedly used insider knowledge of which NFTs would appear on the front page of OpenSea to buy them before being featured and then sell them for a profit. Let\u2019s take a closer look.<\/p>\n So, what\u2019s actually happening? During the pre-trial phase, Nathaniel Chastain argued that the use of the term \u201cinsider trading\u201d was moot. But, U.S. District Judge Jesse M. Furman denied his motion to remove it from the case. According to the Department of Justice, this is the first insider trading scheme involving digital assets<\/a>. However, Chastain\u2019s lawyers have argued that a question of precedent remains. This is because the assets in question are neither defined as securities nor commodities.<\/p>\n Judge Furman granted the government\u2019s request to stop witnesses from giving their opinions on the case. He did this to prevent arguments that OpenSea<\/a> didn\u2019t suffer any harm. Nevertheless, an expert could still explain how Nathaniel Chastain\u2019s actions affected the company. The court could also hear arguments on the issue of insider trading. However, Chastain\u2019s lawyers claim that the term does not accurately reflect the nature of the alleged crime.<\/p>\n During the trial, Chastain may elect to testify on \u201chis beliefs regarding the effects of his conduct on OpenSea on the theory that such testimony would be probative of willfulness and intent.\u201d The judge also ruled that \u201cChastain may be entitled to cross-examine these witnesses about the clarity of the agreement (or lack thereof).\u201d Ultimately, the court may rule on the matter at trial.<\/p>\n![\"Nathaniel](\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/04\/nate-chastain-opensea-fbi-scaled.jpeg.webp)
\n<\/picture>\n<\/noscript>First Insider Trading Scheme Involving Digital Assets?<\/span><\/h2>\n
![\"OpenSea](\"https:\/\/nftevening.com\/wp-content\/uploads\/2023\/04\/03FC3EFD-C943-44A1-BC1F-9B70258C1A0A.jpeg.webp)
\n<\/picture>\n<\/noscript>Insider trading in digital assets: Nathaniel Chastain\u2019s trial highlights legal grey area<\/span><\/h2>\n