Nate Chastain, a former OpenSea Sea executive, has asked a U.S. district court to drop the insider trading charges against him because non-fungible tokens (NFTs) do not meet the criteria for wired fraud charges.
Using the Carpenter wire fraud theory, Chastain’s lawyer said that NFTs were neither securities nor commodities, and that they were also insider trading. Chastain was charged with money laundering, but his lawyer argued that this charge was not necessary because the Ethereum blockchain is open and easy to understand. The accused’s NFT transactions could be used to find out more about what happened.
