A federal appeals court has overturned the conviction of Nathaniel Chastain, a former OpenSea manager, who was found guilty of wire fraud and money laundering for using insider information to trade non-fungible tokens (NFTs). The Second Circuit ruled that the jury was improperly instructed, which led to a potential conviction based on unethical conduct rather than the misappropriation of a traditional property interest, which is a necessary component of federal fraud statutes. This decision raises significant implications about how insider trading is addressed in the evolving digital asset landscape. Further details are expected as the situation develops.

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