Ex-OpenSea Employee’s NFT Handling Runs into DOJ’s ‘Stradivarius’
Nathaniel Chastain, who allegedly bought and sold nonfungible tokens (NFTs) on the OpenSea app with secret information, was charged in June with wire fraud. The statute, along with the related mail fraud statute, is broad, adaptable and powerful. They’re federal prosecutors’ “Stradivarius, our Colt 45.
Chastain argued in court filings that an “‘insider trading’ wire fraud charge” requires “the existence of trading in securities or commodities.” Judge Jesse Furman in Manhattan rejected the argument last week and refused to dismiss the indictment. The DOJ, which has taken an increased focus on digital assets under the Biden administration, can crack down on conduct that might fall outside the SEC’s reach.
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