First NFT insider trading case to begin this week

The first insider trading case will take place this week in New York, USA, against the former manager of the world’s largest non-fungible tokens (NFTs) marketplace, OpenSea. Defendant Nathaniel Chastain allegedly used confidential information about what NFTs were to be featured on OpeanSea’s homepage for personal gain. According to the indictment released last year, the defendant is charged with wire fraud and money laundering. Defendant’s lawyers denied such accusations and stated that the information accessed was not OpenSea’s property and had no inherent value to the company. Former SEC enforcement lawyer and partner at Seward & Kissel LLP, Philip Moustakis, stated that the court’s decision might have broader implications for assets that do not fall within the current laws prohibiting investment advisers, brokers, and other parties from trading on material nonpublic information.