Nate Chastain Sentenced to Serve 3 Months in Federal Prison for is Role in NFT "Insider Trading" Fraud and Money Laundering Case

Secrets From the Sea

In a city's heart, a verdict was told,

Of digital art and ambitions bold.

Insider moves, they say was the aim.

And three months prison, the Judge did proclaim.

Today in a Manhattan federal court, Nate Chastain, the former head of product at the leading NFT marketplace OpenSea, was sentenced. Although the formal judgment and sentence has not yet been released to to the public, several media sources report Chastain was sentenced to serve three months in federal prison following his conviction on fraud and money laundering charges in the first ever criminal prosecution of NFT “insider trading”. Ex-OpenSea Executive Nate Chastain Gets 3 Months in Prison for Insider Trading

According to a DOJ press release, in addition to the three month prison term, Chasten was also sentenced to serve three months of home confinement to be followed by three years of supervised release, a $50,000 fine, and ordered to forfeiture the Ethereum he made trading the featured NFTs. DOJ SDNY Press Release

The government charged that Chastain exploited his inside knowledge to profit over $50,000 from trading an estimated 45 NFTs that he had advanced knowledge would be showcased on OpenSea's homepage. The government charged that Chasten concealed these “insider trades” by use of multiple “anonymous” wallets and accounts on OpenSea.