{"id":501986,"date":"2022-10-19T09:26:50","date_gmt":"2022-10-19T06:26:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/prosecutors-argue-insider-trading-claim-in-the-opensea-case-is-accurate\/"},"modified":"2022-10-19T09:26:50","modified_gmt":"2022-10-19T06:26:50","slug":"prosecutors-argue-insider-trading-claim-in-the-opensea-case-is-accurate","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/prosecutors-argue-insider-trading-claim-in-the-opensea-case-is-accurate\/","title":{"rendered":"# Prosecutors argue &#8216;insider trading&#8217; claim in the OpenSea case is accurate"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3848c31546e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3848c31546e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/prosecutors-argue-insider-trading-claim-in-the-opensea-case-is-accurate\/#%E2%80%9D_Prosecutors_argue_%E2%80%98insider_trading_claim_in_the_OpenSea_case_is_accurate_%E2%80%9C\" >&#8221; Prosecutors argue &#8216;insider trading&#8217; claim in the OpenSea case is accurate &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Prosecutors_argue_%E2%80%98insider_trading_claim_in_the_OpenSea_case_is_accurate_%E2%80%9C\"><\/span>&#8221; Prosecutors argue &#8216;insider trading&#8217; claim in the OpenSea case is accurate &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvMGRmZjc1MzMtZjA2MS00ZmRiLThiYzAtNDEzYWIxZmVlMzE0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>United States prosecutors have opposed a motion by a former employee of nonfungible token (NFT) marketplace OpenSea to remove \u201cinsider trading\u201d references from his charges.<\/p>\n<p>Prosecutors said the phrase accurately describes the crimes the former OpenSea product manager Nathaniel Chastain is accused of in a memo filed on Oct. 14. It was responding to a motion by Chastain to stop referring to the phrase on Oct. 3, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.law360.com\/articles\/1540520\/feds-say-ex-opensea-staffer-s-case-is-clearly-insider-trading\">according<\/a> to Law360.<\/p>\n<p>Chastain was charged in June for allegedly buying 45 NFTs from June to September 2021 through anonymous wallets and selling them for a profit. He allegedly used his position at OpenSea to either choose or know which collections were featured on the homepage, which often saw their values increase.<\/p>\n<p>Chastain argued the use of \u201cinsider trading\u201d to describe his alleged actions is \u201cinflammatory\u201d and doesn\u2019t have anything to do with the accusations he faces, adding a jury may be influenced by the term if his case is brought to trial.<\/p>\n<p>He also added that \u201cinsider trading\u201d only <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lies to securities and not to NFTs, a claim similarly made in August by his legal team, and the phrase was used to spark attention in the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> to skew the jury&#8217;s view of him.<\/p>\n<p>Prosecutors fired back, stating the phrase \u201caccurately captures\u201d the accusations made against him and the term isn\u2019t \u201cso inherently inflammatory\u201d to warrant the \u201cextreme measure\u201d of having the term removed from his charges.<\/p>\n<p>They also rebuked his claim of insider trading only applying to securities calling it a \u201clegal error\u201d and an \u201cunduly cramped understanding of the phrase&#8221; claiming it can be used to reference multiple types of fraud in which someone with non-public knowledge uses it to trade assets.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Brother of former Coinbase employee pleads guilty to charges related to insider trading: Report<\/em><\/strong><\/p>\n<p>The term \u201cinsider trading\u201d had previously not been used in reference to cryptocurrencies or NFTs before Chastain\u2019s charges.<\/p>\n<p>In June, shortly after Chastain was charged, former U.S. Securities and Exchange Commission (SEC) lawyer Alma Angotti said the case might see NFTs labeled as securities as they could be considered one under the Howey Test.<\/p>\n<p>The Howey Test is used to determine if a transaction is an \u201cinvestment contract\u201d which exists when there is the \u201cinvestment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/corpfin\/framework-investment-contract-analysis-digital-assets#_edn5\">according<\/a> to the SEC.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"nifty_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/prosecutors-argue-insider-trading-claim-in-the-opensea-case-is-accurate\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Prosecutors argue &#8216;insider trading&#8217; claim in the OpenSea case is accurate &#8220; United States prosecutors have opposed a motion by a former employee of nonfungible token (NFT) marketplace OpenSea to remove \u201cinsider trading\u201d references from his charges. Prosecutors said the phrase accurately describes the crimes the former OpenSea product manager Nathaniel Chastain is accused&#8230;<\/p>\n","protected":false},"author":1,"featured_media":501987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvMGRmZjc1MzMtZjA2MS00ZmRiLThiYzAtNDEzYWIxZmVlMzE0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74932,133792,74892,71433,55229,70934,71407,67874],"class_list":["post-501986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-crimes","tag-opensea","tag-tokens","tag-court","tag-law","tag-regulation","tag-trading","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/501986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=501986"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/501986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/501987"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=501986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=501986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=501986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}