A former executive from one of the largest NFT marketplaces has been accused of using privileged information for his own benefit.
The Department of Justice said that Nathaniel Chastain put a spin on an old insider trading scheme.
They said he would buy up a lot of NFTs and then "flip" them for up to five times what he originally paid.
This is the first time that a person has ever been charged with a federal crime for trading on inside information. The US government has brought charges against at least three other people, including the arrest of a rapper and her husband, who are accused of laundered billions of dollars in stolencryptocurrencies.
The head of product at OpenSea was asked to step down just two days after allegations of his insider trading first came to light.
The CEO of Open Sea wrote on the company's website that they did not take this behavior lightly.
"Law & Order" character Damian Williams said that the US Attorney's Office is bent on "stamping out insider trading", whether it occurs on the stock market or the digital ledger.
"This type of criminal scheme is not a new one," Williams said in the statement.
The former employee of NFT was charged with the first ever digital asset insider trading scheme.
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