OpenSea, Rough Seas

Ex-OpenSea employee loses motion to strike the term “insider trading”


A while back we reported on how the ex-Project Manager of OpenSea, now under criminal charges, wanted to subpoena OpenSea and have the term “insider trading” removed from the case. it would appear the judge of the Southern District of New York was not interested in accepting the request. 

The motion was to strike the term “insider trading” from the indictment and bar the Justice Department from ever using that term again in relation to this trial. The claims were that the statement was inflammatory, unduly prejudicial, and irrelevant to the crimes the defendant is being charged for. The judge did not budge with this line of explanation. 

Another motion to suppress evidence that came from a search within the defendant’s home by the FBI was also denied. The argument given for that motion was that the search violated his Fourth Amendment rights against unreasonable search and seizure and Fifth Amendment rights against self-incrimination.

The defendant Nathaniel Chastain is being accused of using his position within the company to make a profit on the posting of NFTs on OpenSea. The ex-employee was able to use his knowledge of NFT projects that would appear on the page and how well they would do and thus turn a profit. This is very similar to the securities violation of insider trading.

Currently, the subpoena to get OpenSea to the trial is still open as Chastain wants documents from the company showing that executives were aware of what he was doing. He hopes to use the information to show whether the information he allegedly used was considered “property” of OpenSea.

Judge Furman has stated that details on the denials would be explained in a conference this Thursday, the same conference would be used to discuss the schedule and length of the trial.


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