Nathanial Chastain, the Ex-Head of Product at OpenSea, who received a three month prison sentence for insider trading with anonymous wallets and accounts, has opted to begin serving his sentence while his appeal is still pending. Chastain’s decision was communicated to the New York District Court in a letter from his legal team on Wednesday.
Insider trading refers to the illegal practice of buying or selling assets like stocks or options of a publicly traded company based on undisclosed and confidential information typically known only to insiders such as executives, employees or board members.
Chastain, who was found guilty of money laundering and wire fraud in a court in New York back in May, made over tens of thousands of dollars by buying and selling NFTs he knew would be featured on OpenSea’s homepage. While the prosecutors initially sought a two-year sentence, the judge ultimately opted for a more lenient punishment, citing Chastain's modest income as a contributing factor.
At the time of the crime, the NFT market had experienced its peak with an estimated value of around $40 billion.
Chastain, 32, will serve his prison term followed by three months of home confinement and three years of supervised release, according to the Department of Justice.
U.S. Attorney Damian Williams emphasized that this sentence should serve as a message to other individuals, within companies; insider trading will not be tolerated under any circumstances.
