OpenSea confirms one of its executives used insider knowledge to buy NFTs before they appeared on the front page

OpenSea, the largest marketplace for non-fungible tokens (NFTs) issued a statement acknowledging that Nate Chastain, the company's head of product, bought NFTs he knew were scheduled to be publicly promoted on the front page of the website. The statement read, in part:

This is incredibly disappointing. We want to be clear that this behavior does not represent our values as a team. We are taking this very seriously and are conducting an immediate and thorough review of this incident so that we have a full understanding of the facts and additional steps we need to take.

OpenSea also implemented policies to prevent this kind of front running from happening again:

  • OpenSea team members may not buy or sell from collections or creators while we are featuring or promoting them (e.g. on our home page); and 
  • OpenSea team members are prohibited from using confidential information to purchase or sell any NFTs, whether available on the OpenSea platform or not.