Nate Chastain is accused of buying NFTs that he knew were going to be listed on the marketplace's homepage — and selling them for a profit after they were publicized.
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A former OpenSea employee has failed in his attempts to get an insider trading charge dismissed.
Nate Chastain is accused of buying NFTs that he knew were going to be listed on the marketplace's homepage — and selling them for a profit after they were publicized.
While a judge said some of his arguments were compelling, they ruled that a jury should decide — meaning that the case will go to trial.
Chastain had also been lobbying to get U.S. prosecutors banned from using the phrase "insider trading" related to this case.
Since charges were brought against him, his lawyers have argued that insider trading was impossible to achieve because NFTs "are neither securities nor commodities."
They've also described this term as "inflammatory" and "prejudicial." Prosecutors insist this phrase is accurate.
The judge is yet to rule on this issue, but they have suggested that references to insider trading could be struck from the indictment — meaning the government wouldn't be able to use it during court proceedings.
