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ARTICLE · 22 AUGUST 2025

Second Circuit Vacates Fraud Conviction In First Crypto "Insider Trading" Case

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In United States v. Chastain, No. 23-7038, 2025 WL 2165839 (2d Cir. July 31, 2025), the United States Court of Appeals for the Second Circuit vacated wire fraud and money laundering convictions in what the government described as its first crypto insider trading case.

United StatesTechnology
Michael J. Gilbert
Michael J. Gilbert
Christopher Bosch
Christopher Bosch
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In United States v. Chastain, No. 23-7038, 2025 WL 2165839 (2d Cir. July 31, 2025), the United States Court of Appeals for the Second Circuit vacated wire fraud and money laundering convictions in what the government described as its first crypto insider trading case. The case involves a former employee of OpenSea, an online non-fungible token ("NFT") marketplace, who allegedly used confidential information about which NFTs would be featured on OpenSea's homepage to purchase those NFTs before they were promoted, then sold them after a post-promotion price bump for a profit. At trial, the United States District Court for the Southern District of New York instructed the jury that property protected by the wire fraud statute need not have commercial value, and the defendant could be convicted of wire fraud by failing to abide by societal mores.

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