Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Storm on OpenSea After Admitting Employee NFT 'Insider Trading'

Storm on OpenSea After Admitting Employee NFT 'Insider Trading'

OpenSea, leading peer-to-peer NFTs and collectibles marketplace is under fire after admitting insider trading. An employee abused their position to front-run the purchase of NFTs before they were promoted on the website’s homepage.

OpenSea users have not been hiding their reaction, accusing the platform of ‘allowing’ insider trading.

However, as there is no specific NFTs legislation on such practices, some would say OpenSea, and the employee have done nothing illegal.

But at the same time, there’s no question that the practice is highly immoral.

Twitter Users Uncover ‘Insider Trading’ of NFTs On OpenSea

Things started to unveil on Tuesday when a Twitter user posted peculiarities with the buying habits of OpenSea’s Head of Product, Nate Chastain.

“Hey OpenSea why does it appear Nate Chastain has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits, and then tumbles them back to his main wallet with his punk on it?”

According to the Twitter user Zuwu, it seemed as Chastain was buying NFTs before they were listed on the front page. Following the front page listing, demand spiked pushing the price higher, resulting in an inflated sale and the funds going to his wallet.

The Twitter user did not make any allegations on the number of times he noted this. Also he didn’t comment on how much profit Chastain has gained from the activity.

Zuwu’s investigation was extensive, including wallet analysis, use of the Wayback machine, and following trails from wallet to wallet. He also encouraged others to do the same to pick up on any points he may have missed.

One such line of inquiry showed the transaction details of a 7.14 ETH ($25,659) transfer supposedly going to a wallet that Chastain controls.

OpenSea’s Response

OpenSea responded to the allegations with a blog post written by CEO Devin Finzer, admitting the accusations true. OpenSea was quick to point out that such practices do not reflect their values.

“This is incredibly disappointing. We want to be clear that this behavior does not represent our values as a team.”

The post added that they had opened a “third-party review” to establish exactly what happened, hoping to gather a better understanding of the situation and circumstances.

Following the incident, OpenSea has already brought in additional staff policies to prevent the same happening in the future. As part of the new policies, staff members are not allowed to buy and sell NFTs while they are featured or being promoted. Also the use of confidential information to trade NFTs across is banned on all platforms, not just on OpenSea.

Finzer ended the post, saying the firm is committed to winning back the trust of users.

Source: Storm on OpenSea After Admitting Employee NFT 'Insider Trading' – Fintechs.fi

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
×