Chastain was proven guilty of purchasing and selling NFTs from sets he knew would be showcased on his former company’s main website later on.
Nate Chastain, who used to be in charge of products at OpenSea, a platform for NFTs (unique digital items), has been given a three-month prison term. He got in trouble for making trades using secret information and making a lot of money, around tens of thousands of dollars.
Chastain is 33 years old and was found guilty of cheating and moving money around illegally in a court in New York in May. This case was the first big one about people trading NFTs with inside information, according to the people prosecuting the case. Chastain earned over $50,000 by buying and selling at least 45 NFTs that he knew would be shown on OpenSea’s main webpage.He tried to hide his actions by using different secret accounts and wallets on OpenSea, according to the U.S. Justice Department.
The news about his sentencing was first reported by Inner City Press on Tuesday.
Chastain’s punishment is much shorter than what the prosecutors had asked for, which was about two years in jail. They had mentioned a similar case where someone did unfair trading at Coinbase. The judge in this case gave Chastain a milder punishment because he didn’t make a lot of money from his unfair trading.
When Chastain did the unfair trading, the NFT market was really big and worth about $40 billion.
The U.S. Attorney Damian Williams said that this punishment should make other people who work in companies careful because they won’t allow this kind of cheating, whether it’s in the NFT world or any other market.
As per the Department of Justice (DOJ), after finishing his time in prison, Chastain will have to stay at home for another three months, and then he’ll be watched for three years to make sure he doesn’t do anything wrong again.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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