A trial date has now been set for Nathaniel Chastain, former product head of OpenSea, and he is expected to be indicted on April 24, court documents show.
If the case goes to trial, Chastain will face charges of wire fraud and money laundering.
In a memo filed yesterday, U.S. District Judge Jesse M. Furman denied many of the allegations filed by both sides in the case, stating that “Chastain’s allegations regarding the use of the term ‘insider trading’ are unfounded. there is no,” he said.
DOJ called the lawsuit against Chastain: First insider trading scheme involving digital assetsHowever, Chastain’s attorneys argue that the issue of precedent regarding insider trading remains because the assets in question are not defined as securities or commodities.
Chastain was first indicted in October 2022 and charged with alleged illegal profits from NFT sales in 2021. Sell them for profit once they are highlighted on the site.
The judge upheld the government’s motion to exclude witnesses’ opinions on the case. A second motion to remove the claim that OpenSea suffered no harm was also granted, with the caveat that it might.
The court could also hear directly from Chastain about how he believes his actions affected his former employers. The judge wrote that Chastain may choose to testify on “his belief as to the implications of his actions for OpenSea on the theory that such testimony would prove willfulness and intent.” .
Fuhrman also held that “Chastain may have the right to cross-examine these witnesses as to the clarity (or lack thereof) of the agreement,” and that the court could decide on the matter at trial. have a nature
Meanwhile, in another case of insider trading of digital assets, former Coinbase product manager Ishan Wahi pleaded guilty to two counts for committing wire fraud in February. Similar arguments And he sought to dismiss the Securities and Exchange Commission lawsuit on the grounds that there was still no regulatory clarity that the tokens he traded were securities.
Prosecutors indicted Wahhi, his brother Nick Hill, and another Samir Ramani, while the SEC simultaneously indicted the three in civil lawsuits for securities law violations.
