CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

OpenSea adopts new practices after 'insider trading' breach

By Kevin Donovan

21:37, 16 September 2021

OpenSea on screen
OpenSea on screen - Photo: Shutterstock

Non-fungible token trading platform OpenSea has fired an employee who engaged in insider trading activity and instituted new measures to prevent future breaches, the company announced.

Additionally, the company will conduct a review of its practices and restricted all employees from trading in any digital asset on their platform. is an online marketplace for digital collectibles called non-fungible tokens, along with gaming items and other virtual items backed by a blockchain. Anyone can buy or sell items through a smart contract.

Employee used false identity

In a post on the company’s public blog reporting its findings, OpenSea said an employee with knowledge had purchased stakes in upcoming offerings under a false identity prior to OpenSea listing the particular NFTs.

“We have a strong responsibility to our community, and we take any breach of trust incredibly seriously,” OpenSea co-founder and CEO Devin Finzer Tweeted Thursday afternoon.

“We've taken additional steps to address this and are investing in policies that move the space towards greater transparency and openness,” Finzer said.


17,037.80 Price
-1.980% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 7.0


2,392.09 Price
+0.540% 1D Chg, %
Long position overnight fee -0.0192%
Short position overnight fee 0.0110%
Overnight fee time 21:00 (UTC)
Spread 0.40


64,431.85 Price
+1.430% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


0.51 Price
+0.820% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Employees barred from buying, selling NFTs

In the future, employees will be barred from buying or selling stakes in any NFTs on the OpenSea platform, or any of the content creators trading on the homepage. Employees are also forbidden from using confidential information to buy or sell any NFTs “whether available on OpenSea or not.”

The former employee in question was not publicly identified, although rumours circulated on social media speak about OpenSea’s head of product Nate Chastain making roughly $4,400 (£3,190.15) on a single NFT trade 20 minutes after being posted on the OpenSea exchange.

“We do not take this behaiour lightly,” the blog post reads. “Upon learning of this conduct, we immediately commissioned a third party to conduct a thorough review of the incident and make recommendations on how we can strengthen our existing controls.”

OpenSea largest NFT market

New York City-based OpenSea – the operating name of Ozone Networks – claims to be the first and largest NFT marketplace. Trades over OpenSea are in cryptocurrency, using open protocols such as Ethereum and REC-721 and ERC-1155 interoperable standards.

Dallas Mavericks NBA team owner Mark Cuban is the primary backer of OpenSea, which raised $100m in a private funding round in July, which set the value at $4.5bn.

Read more: Clearsale IPO raises 4m, partners with Bold Commerce

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading