Three Months
in Prison for Chastain Guilty of Insider
Trading OpenSea NFTs,Vows to Appeal
By Matthew
Russell Lee, Patreon Maxwell
Book
SDNY COURTHOUSE,
Aug 22 – Already there have
been several civil
Non-Fungible Token cases in
the U.S. District Court for
the Southern District of New
York.
On June 1, 2022 a
criminal case was unsealed,
charging NATHANIEL CHASTAIN, a
former product manager at
Ozone Networks, Inc. d/b/a
OpenSea (“OpenSea”), with wire
fraud and money laundering in
connection with a scheme to
commit insider trading in
Non-Fungible Tokens, or
“NFTs,” by using confidential
information about what NFTs
were going to be featured on
OpenSea’s homepage for his
personal financial gain."
Inner City
Press covered the trial
(below) until, on May 2, 2023,
Chastain was found guilty and
his sentencing set for August
22.
On August 22,
Chastain was sentenced to
three months in prison and a
$50,000 fine. Inner City Press
thread:
OK- near end of
sentencing in US v Nate
Chastain, described as 1st
"NFT insider trading" case.
But loss/gain amount is less
than $50,000, defense lawyer
Miller (who also repped Wahi)
says. Judge has taken 5 minute
break before announcing
sentence.
All rise! Judge:
Respect for the law and
general deterrence militate
for punishment. But he is a
first time offender. There are
mitigating curcumstances. He
has a potentially promising
future...
Judge: There was
a 2017 case, a few thousand
dollars of profit, less than a
year sentence. Mr Chastain, I
sentence you to 3 months in
prison. Story soon. Inner City
Press @innercitypress ·
Judge: Mr.
Chastain is to self-surrender
to prison Nov 2, 2023 at 2 pm.
Defense: We request bail
pending appeal. Judge: Put it
in writing. Before Nov 2...
Adjourned.
Watch this site.
***
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