Former OpenSea Manager’s Conviction Overturned in Landmark Crypto Insider Trading Case

Nathaniel Chastain, a former product manager at OpenSea, has had his conviction overturned in the first-ever non-fungible token (NFT) insider trading case. The Second Circuit Court of Appeals in New York ruled that the evidence presented against Chastain was insufficient to prove he committed wire fraud. The case centered on Chastain purchasing NFTs before they were featured on OpenSea’s homepage and then selling them for profit. The defense argued that Chastain did not have a fiduciary duty to OpenSea regarding the confidential information he used. The court agreed, stating that Chastain was not legally obligated to disclose his trading plans to OpenSea. This ruling marks a significant victory for Chastain and raises questions about the future of insider trading cases in the crypto space.