Lawyers for former OpenSea head of product Nathaniel Chastain contested the indictment against him.

In June, a jury found him guilty of fraud and money laundering in a marketplace insider trading scheme.

As a result, Chastain pre-purchased tokens using anonymous wallets and OpenSea accounts. Between June and September 2021, the senior executive sold these jobs for two to five times the purchase price.

In the petition, the lawyers stressed that internet fraud is associated with securities and commodities. But neither are NFTs, they added.

Lawyers also argue that authorities are unable to verify the financial interpretation of cryptocurrencies in accordance with anti-money laundering regulations.

“Government prosecuted using unreasonable criminal law practice to set a precedent in the digital assets space” experts concluded.

Recall that in September 2021 OpenSea terminated its employment relationship with an unnamed employee involved in insider trading. This moment coincided with his departure from the Chastain company, which was suspected of fraud. He was arrested on June 1, 2022.

Previously, Huobi accused the former employee of illegal trade. According to media reports, he allegedly opened a retail trading account in his father’s name and secured a $20 million loan from the exchange for subsequent trading.

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