OpenSea NFT Platform reports insider trading!

17 September 2021 Internet, IT & e-Discovery Blog Blog
Authors: Peter Vogel

CNBC reported that “In OpenSea’s written statement, it called the incident “incredibly disappointing” and said that it is “conducting an immediate and thorough review.”  The September 15, 2021 report entitled “There was insider trading on NFT platform OpenSea, the $1.5 billion start-up admits” included the OpenSea wrote in a blog post Wednesday:

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,…

Also the report had included these comments:

Rumors of insider trading at NFT marketplace OpenSea are true, according to a statement from the start-up, which was recently valued at $1.5 billion.

While the statement did not identify the employee, on Tuesday evening, OpenSea’s head of product, Nate Chastain, was accused by Twitter user @ZuwuTV of using secret crypto wallets to front-run sales on the platform.

Watch out when you create NFTs!

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Authors