Open Sea NFT Executive Arrested for Financial Crimes

Open Sea Head Faces Criminal Probe

Open Sea NFT Executive Arrested for Financial Crimes

A former top executive with Open Sea – a leading distributor and designer of non-fungible tokens (NFTs) – has been arrested for crimes such as wire fraud, money laundering, and insider trading.
Open Sea Head Faces Criminal Probe
NFTs have become increasingly popular over the past two years. First introduced in 2020, NFTs represent partial ownership in larger commodities, such as original comic strips or a piece of art. For example, if one is selling an NFT of the Mona Lisa painting by Leonardo da Vinci, that NFT represents a stake in the painting. While you won’t be the full owner of the artwork, you’ll own a portion… at least that’s what the NFT is slated to represent.
To be fair, the marketplace has risen through the ranks in a relatively short period. For something that was introduced just over two years ago, the space has become a multi-billion-dollar industry, and these NFTs have become extremely popular extremely quickly, with some selling for hundreds of thousands of dollars. However, many industry heads question the validity of the space and feel it is overblown and downright shady in some cases.
Vitalik Buterin – the co-creator of Ethereum, the world’s second largest cryptocurrency by market cap – has become rather skeptical when it comes to NFTs. In a recent interview, he stated:
Crypto itself has a lot of dystopian potential if implemented wrong. The peril is you have these $3 million monkeys, and it becomes a different kind of gambling. There definitely are lots of people that are just buying yachts and Lambos… The goal of crypto is not to play games with million-dollar pictures of monkeys. It’s to do things that accomplish meaningful effects in the real world. If we don’t exercise our voice, the only things that get built are the things that are immediately profitable, and those are often far from what’s best for the world.
The Justice Department has taken Nathaniel Chastain – the former head of product at Open Sea – into custody after it was alleged that he was trading NFTs on insider information. U.S. Attorney Damian Williams explained in a statement:
NFTs might be new, but this type of criminal scheme is not. As alleged, Nathaniel Chastain betrayed Open Sea by using its confidential business information to make money for himself. Today’s charges demonstrate the commitment of this office to stamping out insider trading, whether it occurs on the stock market or the blockchain.
We Don’t Do That Here!
An Open Sea spokesperson also mentioned:
As the world’s leading web3 marketplace for NFTs, trust and integrity are core to everything we do. When we learned of Nate’s behavior, we initiated an investigation and ultimately asked him to leave the company. His behavior was in violation of our employee policies and in direct conflict with our core values and principles.

Tags: insider trading, NFTs, Open Sea

Leave a Reply

Your email address will not be published. Required fields are marked *

New Brokers
2.8 rating
Buy & sell Crypto in minutes
3.0 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.0 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
4.3 rating
eToro is the world’s leading social trading platform, with thousands of options for traders and investors.
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance