. For instance, the wire fraud count is premised on a “violation of the duties [Chastain] owed to OpenSea.” In other words, the DOJ’s theory is that the breach of Chastain’s agreement with OpenSea not to use confidential business information for personal gain constituted wire fraud. While insider trading prosecutions require a breach of duty, wire fraud prosecutions do not.
It is curious that there is no companion SEC case to the action by the Southern District of New York. The SEC has been focusing on regulation of digital assets, especially NFTs. The Chastain indictment indicates that the Southern District of New York will be a partner with the SEC in regulating NFT marketplaces.
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