Rumors of insider trading on the OpenSea NFT platform are true

Date:

Rumors of insider trading on the NFT Marketplace OpenSea are true. According to the statement From startup Recently worth $ 1.5 billion..

“Yesterday I learned that one of our employees bought an item that we knew would appear on the front page before it went public,” the company wrote in a blog post Wednesday.

The statement did not identify the employee, but on Tuesday night, OpenSea product manager Nate Chastain used a secret crypto wallet from Twitter user @ZuwuTV to accelerate sales on the platform. Was accused of.

so A series of posts Twitter users track transaction receipts via the public blockchain and say that Chastain buys an NFT just before OpenSea posts its work on the front page of its website and then sells it after a surge in prices. It is said to have been shown. The topic of the list on that main page.

An OpenSea written statement called the case “extremely disappointing” and stated that it was “performing a swift and thorough review.”

OpenSea didn’t confirm the employee’s name with CNBC “at this time,” but a spokeswoman said the company “will eventually update everyone after the internal investigation is complete.”

Chastain’s public LinkedIn account Currently listed as “Not Available”.

Chinese blockchain and crypto news platform 8btc Track sales It is reportedly tied to Chastain and his front-running scheme, focusing on a total profit of 18.875. ether, Or about $ 67,000 at today’s price. CNBC hasn’t confirmed the numbers on its own, and OpenSea has told CNBC that it hasn’t revealed how much employees have benefited from the plan.

OpenSea recorded a record $ 3.4 billion in trading volume last month. According to Dune Analytics.. Despite billions of dollars worth of ether trading on the platform, startups seem to have been relatively slow when it comes to limiting employees to invest in NFTs using privileged information. But that is changing from today.

The company prohibits members of the OpenSea team from buying or selling from collections or creators while being featured or promoted by the company, and prohibits staff from “buying or selling using sensitive information.” He wrote that he implemented two new employee policies, including. All NFTs, whether or not they are available on the OpenSea platform. ”

The entire episode reveals a widespread regulatory gap in the wider crypto ecosystem. NFTs in particular are in the legal gray zone. NFT-related insider trading does not appear to be illegal, as they are not officially considered securities and there are not many precedents for digital assets as a whole.

Boaz Sobrado, a London-based fintech data analyst, said the OpenSea scandal clarifies two things. “I haven’t done much” with that information.

“There is a lot of debate about regulation right now, but what many of these villains are doing is clearly in breach of current law. Regulators fight this kind of fraudulent and misleading remarks. There is no need to extend authority for this, “Sobrad said.

“Regulators aren’t looking at the awards and I think most people are running away with it,” he said.

Sobrado said this Shows that money has become very loose, scams have become very brave, and participating people are neglecting the simplest steps to cover their trucks.

“This also shows a kind of frustration madness that is happening in the field right now,” he said. “The situation is good and everyone feels rich, but not much talk about it. But as soon as the market declines, many of these people are exposed and many are angry.”

Rumors of insider trading on the OpenSea NFT platform are true

Source link Rumors of insider trading on the OpenSea NFT platform are true

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