The former product manager of the world’s largest non-fungible token marketplace, OpenSea, has filed a petition with the US Department of Justice.
Nathaniel Chastain argues that the insider trading case against him has no legal basis because non-fungible tokens (NFTs) are not considered securities or commodities. Therefore, a top manager cannot be accused of fraud.
Lawyers for the former OpenSea employee note that a basic view of insider trading requirements based on deed Carpenter v. United States emphasizes the need for securities or commodities to be charged with wire fraud.
“In any fraud theory prosecution in connection with insider trading, the fact that there is trading in securities or commodities is considered an essential element of the crime,” the motion says.
Chastain was indicted in June by the Department of Justice alleging that the former OpenSea employee used insider information to trade NFTs that were to be placed on the marketplace. If the former top manager is brought to trial on charges of insider trading in crypto assets, then on the totality of the charges, Chastain faces up to 40 years in prison.
Source: Bits
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