Insider trading at OpenSea: the accused takes revenge and takes advantage of the regulatory vagueness of cryptocurrencies

Will the defendant be able to get away with it?Former OpenSea employee accused of insider trading, he responds with the voice of his lawyers, who apparently intend to make use ofregulatory uncertainty relating to NFTin particular as regards its definition under the law.

An OpenSea employee in the dock

It is not a question of denying the facts. At least, at this point. The lawyers of Nathaniel “Nate” Chastainformer OpenSea product manager, he prefers to move forward technical argumentsin matters of law, to attempt to dismiss the indictment against their client.

Nathaniel Chastain is currently facing a maximum sentence of 20 years in prison after a grand jury indicted him for electronic fraud and of money laundry, in June. The former OpenSea product manager is at the heart of a insider trading scandal.

Would have usedconfidential business information of the NFT platform for to acquire discreetly NFT, before they are listed on the market home page. Nathaniel Chastain would then resell these NFTs for profit.

To make matters worse, the defendant also allegedly used crypto wallets and anonymous OpenSea accounts to make purchases.

Nathaniel Chastain’s lawyers intend to defend him tooth and nail

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NFT regulatory vagueness to attack the accusation

In a blog post on September 15 last year, OpenSea had recognized these facts overwhelming. What then remains as a line of defense for Nathaniel Chastain?

His lawyers argued, in the motion to dismiss the charge, that NFTs are not neither titles nor commoditiesand that therefore the cases of electronic fraud cannot be applied in this matter.

They also attacked the money laundering allegations, pointing out that the government was not point can prove that the cryptocurrency transactions in question were financial transactions, as defined by the money laundering rules.

In the motion of rejection, the lawyers go so far as to affirm that the lawsuits brought by the government were well founded “Unfounded applications of criminal law to create precedents in the digital assets space”.

If this former OpenSea employee managed to get out of this bad situation, thanks to these purely legal arguments, such an outcome would be another proof of the need from a minimum of clear rules on NFTs and cryptocurrencies in general. Legal and unambiguous definitions of these web3 essentials are far more important than on the hunt for NFT among senior officials.

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