Key takeaways:
- The former OpenSea product manager was given a three-month prison term for money laundering and wire fraud connected to insider trading.
- Nathaniel Chastain would have to turn himself in on November 2; however, his attorneys intended to file an appeal and ask for bail.
Former OpenSea product manager Nathaniel Chastain was given a three-month prison term for money laundering and wire fraud connected to insider trading on the platform.
US Attorney Damian Williams said in a statement on August 22 that Chastain had been given a sentence of three months in jail, three months of home detention, and three years of probation in addition to being required to pay a $50,000 fine and forfeit any ill-gotten ether from the nonfungible token (NFT) trades.
According to a report from Inner City Press, Chastain would have to turn himself in on November 2; however, his attorneys intended to file an appeal and ask for bail. At sentencing, the judge reportedly said:
“Respect for the law and general deterrence militate for punishment,”
On May 3, a jury found Chastain guilty of wire fraud and money laundering after he was accused of utilizing insider knowledge while working for OpenSea to profit from the trading of NFTs. He had the power as product manager to decide which NFTs would be displayed on the OpenSea website. Before they were showcased, he bought 45 NFTs and then sold them.
According to a ruling by Judge Jesse Furman on August 22, the court would decide whether Chastain would have to give up any ETH from the insider trading scam or its equivalent in US dollars. After Chastain was accused and detained by US officials in June 2022, the case was probably over at the time of the sentencing.
In May, Ishan Wahi, a former product manager at Coinbase, was given a two-year prison term in a separate case for utilizing trade secrets to profit from new token listings. His brother Nikhil and friend Sameer Ramani were also accused of participating in the plan and charged in the same case; the former pleaded guilty in September 2022 and received a 10-month prison sentence.
