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OpenSea Employee Resigns Amid NFT Insider-Trading Scandal

NFT trading platform OpenSea has asked for and accepted the resignation of its own head of product, Nate Chastain, following allegations of exploiting information to make a profit. Chastain was reportedly caught using a secret Ethereum wallet to purchase front page NFT releases before they were published to the public.

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OpenSea

Image: NFT

In a company blog post, OpenSea issued a statement upon learning about the unethical activity. OpenSea wrote, “Yesterday, we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly. Since the incident, the NFT marketplace has now implemented two new employee policies that ban them from buying or selling from creators that OpenSea features.

One Twitter user ZuwuTV called out Chastain after noticing transaction receipts on the public blockchain, which supposedly shows the former employees nefarious behaviour. On another crypto and blockchain platform, 8btc, sales reportedly tied to Chastain saw his account make a collective profit of USD$67,000 (AUD$92,000). OpenSea has stated they are “extremely disappointed” and will update the public as further information comes to light.

Not taking the situation lightly, the company has hired a third party to review unethical behaviour and recommend any changes that will prevent similar events in the future. No longer working for the company, it’s still unclear whether Chastain will receive further punishment or repercussions down the road.

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STAFF WRITER

Sam Mangioni

Sam Mangioni is an experienced Staff Writer with an extensive background in digital content production and news. Prior to working for Man of Many, Sam spent three years at Southern Cross Austereo where he served as a Content Producer and News Reporter for the flagship Triple M Breakfast Program. The Sydney-based reporter completed a Bachelor of Commerce from Macquarie University Majoring in Marketing in 2014. A specialist in sport, lifestyle and gear coverage, Sam's work has also featured in Fight News Australia.