By Larry Neumeister, Associated Press | A former product manager at an online marketplace was arrested Wednesday in what federal authorities called the first ever digital asset insider trading scheme involving NFTs.
Nathaniel Chastain, a former employee of a company that does business as OpenSea, was arrested in Manhattan. He was later released on $100,000 bail after entering a not guilty plea to wire fraud and money laundering charges.
Chastain, 31, and his lawyers declined comment immediately after the Manhattan federal court hearing.
U.S. Attorney Damian Williams said the charges were a first because they pertained to NFTs, or non-fungible tokens, that provide digital ownership of art and other content.
Michael J. Driscoll, head of New York’s FBI office, said Chastain used his knowledge of confidential information to buy dozens of NFTs in advance of them being featured on OpenSea’s homepage. OpenSea is the largest online marketplace for the purchase and sale of NFTs, authorities noted.
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Read the whole story here:
https://apnews.com/article/technology-new-york-arrests-manhattan-a9de5a1cebeef9f1588f03dc0262aa57
[Thanks to Alex Teitz for contributing this article! http://www.femmusic.com]
NFT Insider Trading Scheme Charges Are a First, Feds Say
