3500 FBI shuts down major crypto marketplace

FBI shuts down major crypto marketplace

– Nathaniel Chastain was a product manager at OpenSea, the largest marketplace for NFTs, who was accused of insider trading and has since been arrested by the FBI in New York.
– Chastain is accused of using his insider knowledge of which tokens were going to be featured on the front page of OpenSeas website to buy them shortly before they were featured and sell them immediately.
– This case could prove concerning for others in crypto who assumed that practices banned in regulated markets were fair game in the wild west sector.
– The anonymous digital wallet used for the trades was soon linked via transactions to Chastains own.
– OpenSea had not at the time issued an explicit policy against such insider trading, and acted only after Chastains trades came to light.
– In May, an apparent insider trading scheme was uncovered on a leading crypto exchange.
– But until Chastains arrest this week, there was widespread debate over whether such practices were illegal, given the different norms and practices in the sector.
– Chastains arrest comes as a group of more than 25 crypto experts have written an open letter to the US Congress calling for more regulation of the sector.

 

 

3500 FBI shuts down major crypto marketplace
FBI shuts down major crypto marketplace 3

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