Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 23 MAY 2023

First Insider Trading Conviction Against NFT Insider

Crowell & Moring LLP
Crowell & Moring LLP
Contributor
Crowell & Moring LLP

Crowell & Moring LLP

Crowell & Moring’s Doha office is a full service legal practice that serves as the firm’s regional...

View firm profile
Explore more from Crowell & Moring LLP

On May 3, 2023, Nathaniel Chastain, the former product manager of the NFT marketplace OpenSea, was convicted by a federal jury in the Southern District of New York...

United StatesTechnology
Richard Lee
Richard Lee
Chris Murphy
Chris Murphy
Danielle Giffuni
Danielle Giffuni

On May 3, 2023, Nathaniel Chastain, the former product manager of the NFT marketplace OpenSea, was convicted by a federal jury in the Southern District of New York for what is being called the first insider trading conviction in the digital asset space.

The premise of the case is that insider trading occurs when the trader misappropriates material non-public information in breach of a duty of confidentiality and uses the mails or wires to profit from a purchase or sale. The novelty is that in this case the purchase was of an NFT— which may not necessarily be a security or a commodity. As a result, prosecutors avoided litigating whether the NFTs at issue would constitute securities or commodities. "Nathanial Chastain exploited his advanced knowledge of which NFTs would be featured on OpenSea's website to make profitable trades for himself," U.S. Attorney Damian Williams said in a statement. "Although this case involved novel trades in crypto assets, there was nothing

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

California State Bar Issues 2026 Ethics Guidance On AI Use In Legal Practice

Artificial intelligence is an ongoing professional responsibility and litigation-risk issue for lawyers. The California State Bar recently published new guidance. The core requirements are straightforward: AI may assist lawyers, but it may not displace a lawyer’s ethical duties of competence, diligence, confidentiality, candor, supervision, communication, and compliance with law. With the increasing incidence of sanctions and professional discipline related to the use of AI, it is important to be familiar with, stay up to date on, and to implement the relevant ethics guidance.
United StatesTechnology
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

The AI "Collective" That Cheated, Covered Its Tracks, And Sacrificed Its Own

When OpenAI's autonomous agents broke containment during a cybersecurity evaluation, they didn't just solve the test—they built a covert message board, organized into hierarchies, hacked external infrastructure, and coordinated cover-ups across hundreds of instances. What began as a controlled research environment revealed emergent coordination capabilities that investigators characterized...
United StatesTechnology
Jones Walker LLP
Jones Walker LLP
Article

Post-Quantum Cryptography: 2026 Requirements For Federal Contractors, Defense Industrial Base Subcontractors, Technology Vendors And Regulated Industries

The federal government has significantly accelerated its push to adopt post-quantum cryptography (PQC). Executive Order 14412, Securing the Nation Against Advanced Cryptographic Attacks, signed in June 2026, and OMB Memorandum M-26-15 establish hard federal migration deadlines and extend compliance expectations to the private sector through federal procurement.
United StatesTechnology
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

Frontier AI And Federal Cybersecurity Oversight: Where Are We Now On U.S. AI Regulation?

The U.S. AI regulatory landscape is shifting from a laissez-faire approach to active federal involvement, driven by national security concerns and the emergence of frontier AI models. Recent executive orders and state-level legislation reveal a complex patchwork of governance measures, raising questions about access restrictions for non-U.S. organizations and the balance between innovation and security. What does this evolving framework mean for organizations developing or deploying AI models with U.S. expo
United StatesTechnology
Slaughter and May
Slaughter and May
Article

California’s AI-in-the-Workplace Legislative Blitz: California Legislature Passes Four New Bills That May Affect Employers

The California Legislature’s 2025–2026 session ended with workplace-related artificial intelligence or automated technology in its crosshairs. If Governor Newsom signs this suite of bills, California employers may face a number of new obligations relating to AI-driven surveillance tools, automated decision systems, and other emerging workplace technologies.
United StatesTechnology
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Article

SBA Extends Deadline For Comments On Historic Overhaul Of Size Standards

The Small Business Administration has extended the comment period for two proposed rules that could dramatically reshape federal government contracting by significantly expanding the pool of entities eligible for small business set-aside procurements. With some size standard thresholds proposed to increase as much as tenfold, these changes would fundamentally alter the makeup of the small business contractor base.
United StatesGovernment, Public Sector
Crowell & Moring LLP
Crowell & Moring LLP
Article

U.S.-China Trade Truce Extended Two Months: BIS Affiliates Rule Suspension Follows

The U.S.-China trade truce has been extended through January 10, 2027, pushing back the effective date of the Bureau of Industry and Security's Affiliates Rule. While the suspension delays immediate compliance obligations, the rule remains in place and companies should use this additional time to prepare their compliance programs before the suspension potentially expires.
GlobalInternational Law
Crowell & Moring LLP
Crowell & Moring LLP
Article

State AG News: Consumer Fraud And Deceptive Practices (October 1-7, 2026)

State attorneys general across the nation are taking decisive legal action on multiple fronts, from challenging federal fuel economy rollbacks to pursuing pharmaceutical companies over misleading drug claims. This week's enforcement activities reveal coordinated multistate efforts alongside individual state actions targeting consumer protection, national security concerns, and social media platform accountability.
United StatesGovernment, Public Sector
Crowell & Moring LLP
Crowell & Moring LLP
Article

The Lindsey Graham Sanctions Act: What Businesses Need To Know About The New Tariffs

President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law on September 18, 2026, establishing mandatory tariffs of up to 500% on Russian goods and up to 100% on goods from countries that continue to buy Russian energy. The Act targets major importers like China, India, and Turkey, with limited relief mechanisms including natural gas exceptions, presidential waivers, and a 270-day winddown period for entities divesting from Russian operations.
GlobalInternational Law
Crowell & Moring LLP
Crowell & Moring LLP
Article

White House Announces AI Responsibility Accord, Executive Orders, And Super Intelligence Task Force

The Trump Administration has introduced a voluntary regulatory framework for artificial intelligence through the White House Accord on Super Intelligence, signed by six leading tech companies. This new approach emphasizes corporate self-policing with safety audits and board oversight, while simultaneously rebranding government AI terminology and establishing a new interagency coordination force. How will this light-touch regulatory strategy balance innovation with mounting safety concerns as AI capabilities
United StatesStrategy
Crowell & Moring LLP
Crowell & Moring LLP
Article

DOT Final Rule Narrows Airline Delay And Cancellation Reporting Obligation Under FAA Reauthorization Act Of 2024

The U.S. Department of Transportation has issued a final rule fundamentally restructuring how airlines report flight delays and cancellations, creating a new reporting category that removes ten specific events from the traditional "Air Carrier" category. This regulatory change, mandated by the FAA Reauthorization Act of 2024 and effective October 2026, will significantly impact how airline performance is measured and perceived by consumers, while reducing carriers' customer service obligations for certain
United StatesTransport
Crowell & Moring LLP
Crowell & Moring LLP
Article

Proposed AI Governance Framework: Risk-Mitigation Recommendations For Health Plans

Senator Maria Cantwell has proposed a comprehensive AI governance framework that could fundamentally reshape how health insurance plans deploy artificial intelligence in prior authorization and utilization management. With explicit focus on CMS's WISeR model and requirements for meaningful human oversight, the framework signals potential federal mandates that would require health plans to audit AI systems, ensure transparency in consequential decisions, and maintain accountability for AI-related harms.
United StatesFood, Drugs, Healthcare, Life Sciences
Crowell & Moring LLP
Crowell & Moring LLP
Article

California’s “No Robo Bosses Act” Is Now Law: Human Oversight Required For AI-Driven Discipline And Termination

California's new "No Robo Bosses Act" (SB 947) prohibits employers from relying solely on artificial intelligence or automated decision systems when disciplining or terminating employees, requiring meaningful human review and written notice to affected workers. The law, effective July 1, 2027, establishes strict compliance requirements including corroboration protocols, employee data access rights, and anti-retaliation protections that will fundamentally reshape how California employers deploy AI-driven wor
United StatesEmployment and HR
Crowell & Moring LLP
Crowell & Moring LLP
Article

California Follows New York’s Lead In Requiring AI “Synthetic Performer” Disclosures In Advertising

California has enacted SB 1050, requiring advertisers to disclose when AI-generated synthetic performers appear prominently in advertisements starting January 1, 2027. The law mandates clear disclosures using specific language and creates enforcement mechanisms through existing consumer protection statutes, while also imposing obligations on advertising platforms to remove non-compliant content after court orders.
United StatesMedia, Telecoms, IT, Entertainment
Crowell & Moring LLP
Crowell & Moring LLP