The US court overturned the verdict against the former OpenSea manager in the insider trading case.

The US Court of Appeals overturned the conviction of former OpenSea manager Nathaniel Chastain, who was convicted in 2023 in the insider trading case involving NFTs. Authorities acknowledged that the jury may have reached a decision based on erroneous instructions that did not require evidence of the commercial value of the stolen information.

Chastain was accused of secretly purchasing NFTs before they appeared on the OpenSea homepage and reselling them for a profit. According to the prosecution, he earned about $57,000 from 15 transactions, using anonymous accounts to conceal his operations.

Initially, Chastain was found guilty of fraud using electronic communications and money laundering and was sentenced to three months in prison. However, the appeal recognized that the trial judge gave the jury incorrect instructions, allowing a conviction simply for "unethical behavior."