London Daily

Focus on the big picture.
Friday, Aug 29, 2025

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

Newsletter

Related Articles

0:00
0:00
Close
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
×