Pryor Cashman Partner Jeffrey Alberts, co-head of the firm's FinTech Group, spoke to Crowdfund Insider about the issue of insider trading in digital assets.
The article, "Just the Beginning: Digital Asset Insider Trading Arrest Foreshadows More Enforcement Actions Coming," examines the U.S. Department of Justice's arrest of a former manager at OpenSea on charges of using insider information to trade non-fungible tokens (NFTs).
Alberts told Crowdfund Insider:
"This prosecution could be just the beginning of a major sweep focused on the use of inside information relating to transactions in cryptocurrency tokens and other digital assets. The case is particularly important because the government's insider trading charge is not based on the trading of securities. Many people who buy and sell blockchain tokens had assumed that the prohibition on insider trading applied only to tokens that are securities. The government's aggressive use of criminal fraud statutes to apply insider trading concepts to purchases and sales of collectibles could implicate many large cryptocurrency companies who did not anticipate this move by the government."
Read the article using the link below.
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Originally published by Crowdfund Insider
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