BUSINESS | Sep 16 2021 | WOZINGA NEWS
OpenSea unnamed employee perpetrated an insider trading of NFTs, Finzer confirms
- OpenSea CEO Devin Finzer revealed the issue of insider trading.
Nate Chastain, OpenSea’s head of product, is accused of using anonymous crypto wallets.
By Marielle Petere Wozinga Staff
OpenSea CEO Devin Finzer verified the issue about insider trading. The start-up has released a statement on September 15.
“Yesterday, we learned that one of our employees purchased items,” Finzer affirmed.
Moreover, those non-fungible tokens were to showcase on its homepage. Finzer also expressed disappointment regarding the confirmed case.
Until now, the start-up keeps the identity of the employee anonymous. Yet, it made clear that the unnamed employee used internal information to purchase NFTs.
Explosive accusation reveals
On the evening of September 14, a Twitter user @ZuwuTV posted a thread. The user cited OpenSea Head of Product Nate Chastain for using confidential crypto wallets.
In addition, the allegation was Chastain sent 5 Ethereum, worth around USD 17,000. There was an explanation of the transaction flow.
Well, The Verge mentioned. “from his known wallet to an anonymous wallet that then sent the money to a third account.”
The article continued, “Later selling them for a profit once the price increased due to their exposure.”
Similarly, another alleged incident was about the problem of ricefarmer.eth. It happened when the digital item “Spectrum Of A Ramentication Theory” by digital artist Dailydust.
Investigation in OpenSea begins
As the largest NFT trading marketplace, OpenSea clarified its Terms of Service.
It stated, “We want to be clear that this behavior does not represent our values as a team.”
Currently, the start-up has confirmed that a third party has started to conduct an investigation. It even presented the implemented policies.
First, the start-up team members are prohibited to buy or sell from collections or creators while being featured on its homepage.
Second, they are forbidden from using confidential information to purchase or sell any NFTs, whether available on the OpenSea platform or not.
Also, the start-up has acted on the matter. Several NFT community members are hopeful for a positive result from such an incident.