Nathaniel Chastain, the former Head of Product at OpenSea, the largest Non-Fungible Token (NFT) trading platform in the world, has chosen to serve the term and withdraw his demand for bail while defending.
Ex-OpenSea Exec Notified Judge on September 7
Chastain’s lawyers notified the judge of the decision he made, in a letter that was submitted to a New York District Court on September 6. As per the development and in accordance with the court’s previous order and judgment, Chastain is now going to self-surrender by November 2 to start serving his prison time while his motion to reconsider is pending.
As the Head of Products at OpenSea, it was his duty to make a confidential selection on the online collectible that would be displayed on the homepage. Before they appear on the homepage, these NFTs are typically offered for sale at rather low costs. The US Department of Justice (DoJ) has confirmed that once they are advertised, their prices increase.
OpenSea Employee Got a 3-Month Jail Term
As per the federal judge OpenSea employee of the United States District Court for the Southern District of New York’s ruling on the petition brought by the prior OpenSea employee, he was given a three-month prison term and a $50,000 damage fine. He was also given a three-month period of house arrest, three years of supervised release in addition to the prison term. He will also likely have to lose the Ethereum (ETH) he earned from buying the NFTs.
First-ever Insider Trading
It is also noteworthy that Chastain was allegedly involved in the first-ever insider trading involving digital assets, specifically NFTs. Although the former OpenSea manager was found guilty in May, his trial actually began in April when he was accused of fraudulent acts. Attorney Williams had previously accused Chastain of using confidential company data to buy NFTs from the well-known NFT market at a discount price in 2022. Then he sold them and made a profit of up to $50,000.