Case Background
The U.S. Department of Justice has announced that it will no longer pursue a retrial against Nathaniel Chastain, the former executive of NFT platform OpenSea, for insider trading charges. A deferred prosecution agreement has been reached, and the case is expected to be dismissed within a month, according to a notice received by Manhattan Federal Court.
Details of the Case
In 2023, Chastain was convicted of wire fraud and money laundering for allegedly exploiting his position to purchase NFTs prior to their featured placement on OpenSea's homepage, later selling them for profit. However, the federal appeals court overturned the verdict in July, ruling that the jury had been improperly instructed and that the homepage data lacked commercial value, thus not meeting the federal definition of property under wire fraud statutes.
Agreement Reached
Jay Clayton, U.S. Attorney for the Southern District of Manhattan, stated that due to Chastain having already served three months in prison and agreeing not to contest the forfeiture of 15.98 ether, valued at $47,330, the Department of Justice has opted not to pursue a retrial.
- DOJ halts retrial proceedings
- Deferred prosecution agreement signed
- Chastain agrees to asset forfeiture