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U.S. Appeals Court Overturns OpenSea Insider Trading Conviction
Former OpenSea exec Nate Chastain's convictions for wire fraud and money laundering have been overturned.
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A federal appeals court in Manhattan has vacated Nate Chastain’s convictions for wire fraud and money laundering, ruling that jurors may have convicted him based on unethical behavior rather than proof of fraud tied to property ownership.
What’s the Scoop?
- Conviction Overturned: The 2nd U.S. Circuit Court ruled that the jury was improperly instructed, potentially convicting Chastain for mere unethical conduct rather than property-based fraud.
- Case Context: Chastain had been convicted in May 2023 for using insider knowledge of NFTs scheduled to appear on OpenSea’s homepage, earning approximately $57,000 in profit.
- Legal Argument: His appellate brief argued that information about featured NFTs did not constitute protected property under federal wire fraud statutes.
- Sentencing Details: Originally sentenced to three months in prison, three months of home confinement, three years of supervised release, a $50,000 fine, and forfeiture of trading-related ETH.
- Case Next Steps: The ruling remands the case back to district court for further proceedings consistent with the appeals court decision.