OpenSea confirms executive engaged in NFT insider trading

An executive at the NFT marketplace used insider knowledge to buy assets in advance.

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Whenever a company is dealing in the stock or crypto worlds, the concern of insider trading is very real. People within these businesses often have an idea of upcoming actions that may influence stock or cryptocurrency value, and may use that information to put themselves or their friends at an unfair advantage. This was exactly the case at OpenSea, as the company has confirmed one of its executives engaged in NFT insider trading.

OpenSea confirmed in a new blog post that an executive at the company used insider knowledge to purchase NFTs prior to them being featured on the digital marketplace. A light investigation into the matter exposed this individual’s identity as Nate Chastain, head of product at OpenSea, as reported by Tom’s Hardware.

Following the incident, OpenSea has implemented two new rules in order to prevent the issue from happening again in the future. This includes restricting employees from purchasing any NFTs that are said to be featured in the shop, as well as prohibiting employees from using any company knowledge to purchase or sell NFTs on any platform.

It’s not mentioned in the OpenSea blog post if the executive is facing any legal action, or has even lost his job over the incident. Insider trading has long been an issue in the stock market, and is now bleeding into the bustling world of NFTs.

Contributing Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Star Wars nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_

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