First Case of Insider Trading Within the NFT Industry
The DOJ has charged Nathaniel Chastain, a former product manager at Ozone Networks, Inc. d/b/a OpenSea (“OpenSea”), a non-fungible token marketplace, with wire fraud and money laundering, in connection with a scheme to commit insider trading involving NFT’s. The defendant used confidential, OpenSeal information regarding which NFT’s were going to be featured on its homepage.
David Rosenfield, Chair of the White Collar Defense and Investigations group at Warren Law Group states, “it was only a matter of time before insider trading schemes appeared in the digital token industry. This case is an example to anyone working within this industry that NFT’s must be treated in a similar fashion to traditional securities when it comes to trading on inside information.”
If you are an executive at a digital token marketplace, it is critical that you operate your company in a lawful, ethical manner. Although the NFT marketplace is a new platform, you must operate in an appropriate manner. It is often helpful to utilize the services of a seasoned regulatory and/or white collar attorney to assist your company. Contact the attorneys at Warren Law Group at (866) 954-7687 or email firstname.lastname@example.org to schedule your consultation.