Insights

NFT Platform Involved In Insider Trading

The popular NFT Platform OpenSea has admitted that one of its employees has taken part in an NFT-related insider trading scheme. The employee who is not yet named but the company wrote a blog post stating “Yesterday we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly,”. 

After a series of posts on Twitter went viral a user traced  receipts of transactions through the public blockchain. This user allegedly shows that OpenSea’s head of product, Nate Chastain would allegedly buy an NFT just before OpenSea placed the piece on the front page of its site, and sell it after the NFT jumps in price. 

In OpenSea’s written statement,called it “incredibly disappointing” and it is “conducting an immediate and thorough review.”

OpenSea said a spokesperson of the company would “update everyone eventually after an internal investigation is complete.”

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