The Facts
Nate Chastain, a former executive at the non-fungible token (NFT) trading platform OpenSea has been indicted on charges of insider trading.
It's the first case of its kind focused on the sale of NFTs, which offer a new form of digital asset ownership that is verified on decentralized blockchains.
The Spin
Narrative A
NFTs may be new, but front-running and insider trading are not. The DOJ, SDNY, and the FBI's National Cryptocurrency Enforcement Team (NCET) are at the forefront of law enforcement efforts to protect investors and punish criminal agents. With this action, these agencies have put outlaws who think web3 is the Wild West on notice.
Narrative B
The roaring NFT market has been attacked by hackers and undermined by "rug-pulling" fraudsters and counterfeiters. Now investors need to be wary of the very people who are facilitating trades in the open market. It's best to stay away from this highly volatile space altogether.