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). In a decision made on Thursday, the Second Circuit determined that the jury had been improperly instructed. It concluded that Chastain could have been convicted for unethical conduct instead of the required misappropriation of a traditional property interest, which is essential under federal fraud statutes. This ruling raises important questions about the legal frameworks governing NFTs and insider trading practices within the cryptocurrency sector. This is a developing story and further updates will be provided as they become available.

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