By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag
SDNY COURTHOUSE, August 19 – Already there are several civil Non-Fungible Token cases in the U.S. District Court for the Southern District of New York.
On June 1, a criminal case was unsealed, charging NATHANIEL CHASTAIN, a former product manager at Ozone Networks, Inc. d/b/a OpenSea (“OpenSea”), with wire fraud and money laundering in connection with a scheme to commit insider trading in Non-Fungible Tokens, or “NFTs,” by using confidential information about what NFTs were going to be featured on OpenSea’s homepage for his personal financial gain. CHASTAIN was arrested this morning in New York, New York and will be presented today in the United States District Court for the Southern District of New York."
When he was presented, before U.S. District Court for the Southern District of New York Magistrate Judge Barbara C. Moses, Chastain was allowed to leave after signing a $100,000 bond. He can travel throughout the continental US, but urinanalysis was ordered to test for drugs.
On June 15, Chastain was arraigned before Judge Jesse M. Furman. Discovery includes three phones; there was no post arrest statement. But Chastain's lawyer took the opportunity to ask how it could be insider trader if NFTs are neither securities nor commodities.
Judge Furman set a schedule for a motion to dismiss, to be followed by separate motions to suppress, if any, then a conference then might include oral argument on October 27 at 3:30. Judge Furman said he rarely holds oral argument in such circumstances but this case might benefit from it.
On August 18, Judge Furman granted the New York Council of Defense Lawyers the right to file an amicus brief. NYCDL says the prosecution's theory, if accepted, would mark a substantial expansion of Federal fraud statutes. Judge Furman ruled: "MEMO ENDORSEMENT as to Nathaniel Chastain re: For the foregoing reasons, the NYCDL respectfully requests that its application to file an amicus curiae brief in support of defendants motion to dismiss, on or before next Wednesday, August 24, 2022, be granted...ENDORSEMENT... Application GRANTED. The Government may move for an extension of its deadline (and the reply deadline) if, after reviewing the amicus brief, it requires more time. (Signed by Judge Jesse M. Furman on 8/18/22)."
Inner City Press will continue to cover these cases.
The case is US v. Chastain, 22-cr-305 (Furman / Moses)
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