Rumors of insider trading at OpenSea, the industry’s largest NFT marketplace, were confirmed in a statement today (Sept. 18). The crypto community reacted angrily yesterday after learning that one of the company’s senior executives used inside information to trade NFTs.
And while the company failed to identify who had profited thousands of dollars in ETH from insider trading, the Twitter community quickly found evidence that it was Nate Chastain, OpenSea’s product manager.
Nate Chastain – OpenSea Product Manager
Chastain himself changed his Twitter bio to “Past: @opensea” this morning, which further fueled rumors that he was actually involved in his nefarious behavior and abuse of power.
Chastain bought NFTs before they showed up on the platform homepage
In one explain On the OpenSea blog, the company announced that an internal review of the case was being carried out by a third party.
“We learned yesterday that one of our employees had bought a number of NFTs that he knew would appear on the platform’s homepage before going public. We take this matter very seriously and have hired a third party to investigate the incident immediately and thoroughly in order to get a full picture and additional steps that we need to take. ”
Twitter user ZuwuTV was the first to identify Nate Chastain as the man behind the controversial insider trading. Quoting publicly available transaction data on Etherescan, he said Chastain bought some NFTs before they were listed on the OpenSea homepage and then sold them for a profit.
ZuwuTV also identified a transaction that traced the fraudulent train profits back to Chastain’s main wallet with his CryptoPunk profile picture on it.
Here’s a TX in returning winnings to the Main
0xa3a45 wallet after turning the page CURRENT on the front pagehttps://t.co/Is6G4xLlIx
– ZuwuTV.eth (@ZuwuTV) September 14, 2021
Nate’s address: 0xa3a4548b39da96eb065ff91811ca30da40431c0d
– ricefarmer.eth 🍚 (@RiceFarmerNFT) September 15, 2021
Chastain seems to have sent around 5 ether to the secondary wallet, with which 4 NFTs from the “Dailydust Collection” can be bought.
A piece from the collection called “Spectrum Of A Ramenification Theory” was bought for 0.25 ethers and after 20 minutes sold for 1.5 ethers, making a profit of 1.25 ethers. Within 20 minutes of buying Chastain, it was listed on the OpenSea homepage and saw a significant increase in price.
After the remainder of the collection was sold for a profit of 2 ethers, this was the secondary wallet send to 7 ethers to Chastain’s main wallet.
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According to Cryptoslate