OpenSea is taking its insider trading offenses seriously. Even though it is through a new form of a digital collectible known as NFTs, it would charge against an employee or person. Its recent lawsuit pushed against a person is to its former executive, Nathaniel Chastain, who served the company as Head of Product before.
OpenSea: Former Executive Gets Charged for NFT Insider Trading
(Photo : JUSTIN TALLIS/AFP via Getty Images)
According to Darren Rovell (via Twitter), Nathaniel Chastain got charged and arrested for his actions against the company that harmed and manipulated OpenSea for its many ventures in the company. Chastain allegedly practiced insider trading with NFTs, and here, the former executive buys tokens that would increase their prices and sell two to five times more.
The report said that Chastain allegedly bought NFTs that seemed to have a small selling price, but it was to no avail as he would be reselling them with more money. It only shows that he has access to certain products that would give him more money, and it undersells the company that would supposedly get more from it by the insider knowledge he possessed.
Read Also: OpenSea's Discord Got Hacked to Spread YouTube NFT Scam! How Much Was Stolen?
NFT Insider Trading is a Big NO, Regulation Coming?
According to Tech Crunch, many district courts focus on litigating many cases regarding insider trading and crimes in the NFT industry. The lawmakers are also keeping a close eye on the many issues related to Chastain and OpenSea, focusing on catching those that commit crimes in the digital industry.
This move only signifies that there will be more regulation coming to online platforms like this in the coming future.
OpenSea's Digital Platform
The public all knows that NFT is a massive venture for all, and since its boom, many people have jumped the bandwagon and focused on creating the said digital art for their needs. People have to go on platforms to trade NFTs and keep them in an account to view and access these, but it would not be ideal for places that usually get attacks or hacks.
OpenSea is a place where people may trade and keep NFT, but there are many security issues that it has already experienced in the past, and there is one with phishing scams that steals the tokens.
Security is a massive concern in blockchain and digital tokens as they are susceptible to these kinds of theft as they are openly available online. People can easily view NFTs during their sales for their interest and information, and for some, it is a way to decide on their next purchase, but for others, it is their next target.
Good thing there are companies like OpenSea that verify the legitimacy of NFTs in the current landscape and industry.
The company focuses on a maximum tolerance of its policies and does not let an attack against them, from external forces down to internal entities, get away for free. The company's recent move against Chastain is a significant case, especially as it removed the executive from its company and charged him with a crime.
Related Article: OpenSea to Add Plagiarism and Fake NFT Detector Features
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Written by Isaiah Richard
