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Monday, October 18, 2021

OpenSea employee accused of NFT insider trading

Yesterday, it was reported that one of the employees at OpenSea, NFT’s largest trading center, was charged with insider trading in non-fungible tokens.

Crypto community survey

According to Crypto Briefing, Nate Chastain, the head of OpenSea, used the confidential information for his profit. He is accused of having bought NFTs before the official auction, and selling them at a high price.

When the site promotes NFT art, its price increases dramatically. The same thing happens for tokens listed in Coinbase. OpenSea believes that Chestain knew in advance which tokens would be on the homepage and made purchases quickly before other users.

The first charge was brought by a Twitter user named Zuwu. After analyzing the network data, he was able to uncover the multiple wallet fraud scheme used by Nate Chestain. He shared this information with the crypto community.

After studying the transaction history of September 14 of this year, users managed to find out that Chesten got 7.1 ETH in just 4 minutes. Then the data collected by BlockBeats emerged which proved that such operations had been performed repeatedly.

The message stream shows some members of the crypto community writing that Chesten had no opportunity to say anything in his defense. Following the accusations, a message appeared on the OpenSea site confirming that the platform employee had used confidential information for his benefit. Company representatives add that they are extremely disappointed with this event. The OpenSea team reports that a full investigation of the incident is underway. Company employees are strictly prohibited from using inside information, as well as trading NFT from the collections presented on the crypto platform.

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Trouble pursues OpenSea

Recently, the platform has been criticized by collectors. Some have taken screenshots that show the commission is 2.5% high. Last week a token worth $ 100,000 was deleted due to an error. Despite this, OpenSea remains the largest NFT trading platform. Its turnover last month was $ 3 billion. 

It remains to be seen how the platform will approach these incidents in the future and whether changes in the internal control department will be planned.

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