Federal prosecutors, in bringing a novel case over trading in nonfungible tokens, will test whether fraud theories used to police capital markets can also apply to the more unorthodox NFT market that boomed during the Covid-19 pandemic.
Nathaniel Chastain, a former employee of the NFT market OpenSea, in June became the first person charged in what prosecutors described as insider trading in NFTs, a kind of digital proof of purchase for goods like art.
