NFT Marketplace OpenSea confirms product manager involvement in insider trading fraud

OpenSea, a US-based non-fungible token (NFT) marketplace, confirmed Wednesday that it revealed evidence against product manager Nate Chastain in an insider trading fraud. OpenSea said the company takes the issue very seriously. To regain customer confidence in the platform, we posted a detailed blog that promises third-party reviews of the incident. OpenSea has become one of the most famous and popular platforms for creating NFTs from images and other forms of art in the last few months. The OpenSea statement came after a Twitter handle called @ ZuwuTV posted a series of tweets, raising suspicion of fraud earlier this week.

“Yesterday I learned that one of our employees bought an item that was known to be displayed on the front page before it was released to the public. This is incredibly disappointing. We are conducting an immediate and thorough third-party review of this case, “OpenSea said. Blog post..

On September 15, Twitter user @ZuwuTV tagged Chastain, Product Manager of OpenSea, with a series of tweets and accused him of investing. NFT — Unique and collectable digital assets built on the blockchain — just before OpenSea introduces them on the front page of its website. Chastain sold these trending NFTs as soon as prices rose and made a profit in the process.

@ZuwuTV also to substantiate the claim Tweet Screenshot showing the transaction history of Chastain’s “secret wallet”.

As a first step towards damage control, OpenSea has implemented two new policies that prohibit members of the company from buying or selling. NFT Anything that is featured or promoted on the page, limiting the use of sensitive information about NFTs by team members for their own personal benefit.

NFT insider trading isn’t explicitly illegal yet, but the NFT Marketplace added in a blog post, “We need to incorporate trust and transparency into everything we do.” OpenSea CEO and co-founder Devin Finze also tweeted an apology to users, sharing a link to the official blog post.

This insider trading scandal, which rocked OpenSea’s internal capabilities, occurs when releasing apps for users on the Google Play Store and Apple App Store. Just a few months ago, the company reported a $ 1.5 billion valuation in a $ 100 million funding round, CoinDesk. report..

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