A judge in the Southern District of New York (USA) has vetoed the former Product Manager's motion to dismiss the fraud allegations. OpenSea Nathaniel Chastain.
The incident happened in mid-September 2021, Former Product Manager OpenSea Nathaniel Chastain was suddenly charged by US prosecutors with insider trading. NFT on the very platform he is developing. Chastain secretly bought dozens of NFT right before they are introduced to the community, selling them afterwards for two to five times the public price.
Not long after that, Mr. Nathaniel Chastain filed a motion to dismiss the above charges, arguing that NFT are not securities or commodities regulated in the US, so there is not enough evidence to charge him.
However, until the end of last week, Judge Jesse Furman issued a formal ruling of disagreement in a memo to dismiss the proposal and assert that the views of Mr. treat.
A former employee of OpenSea, the world's largest NFT marketplace, lost a bid to dismiss insider trading charges in the first such case involving digital assets https://t.co/kIhB2e9ArZ— Bloomberg Crypto (@crypto) October 23, 2022
Despite losing the case, Nathaniel Chastain's lawyers still managed to "rescue" some of the client's situation by asking Judge Jesse Furman to remove word references to "insider trading". . Accordingly, the more appropriate course of action would be to remove the phrase from the indictment rather than dismiss the indictment altogether.