<div id="readability-page-1" class="page"><div><div>US prosecutors will not retry their insider trading case against a former manager at nonfungible token platform OpenSea after a federal appeals court overturned the convictions in July.On Wednesday, prosecutors told a Manhattan federal court that they entered into a deferred prosecution agreement with Nathaniel Chastain and will dismiss their case after the agreement ends in a month.In a letter, Manhattan US Attorney Jay Clayton said the decision was made based on Chastain already serving parts of his initial sentence, including three months behind bars, and that he agreed not to contest the forfeiture of 15.98 Ether (ETH) worth $47,330 that he allegedly made from insider trades.“The interest of the United States will be best served by deferring prosecution of this matter and not retrying the case,” Clayton wrote.<figure></figure>A jury convicted Chastain of wire fraud and money laundering in 2023, with prosecutors accusing him of using his knowledge to buy NFTs that would be featured on OpenSea’s website and later selling them after their prices jumped from being featured.Jury given flawed instructions, says appeals courtChastain was sentenced to three months in prison and a $50,000 fine, but a federal appeals court overturned the conviction in July, ruling that the jury was improperly instructed and that NFT homepage data without commercial value isn’t property under federal wire fraud laws.The case marked the first digital asset insider trading case in US history and crypto backers have cited the overturned conviction to push for clearer legislation to define how digital assets fit within existing laws.Chastain will not be supervised by US Pretrial Services and can apply to seek the return of the $50,000 fine and $200 special assessment that he paid following his initial conviction in May 2023.Chastain’s case adds to a growing list of crypto-related investigations, lawsuits, and prosecutions that the Justice Department and regulators have dropped under the Trump administration, which has promised to deregulate the sector.Magazine: The critical reason you should never ask ChatGPT for legal advice</div></div></div>

US prosecutors have decided not to retry their insider trading case against Nathaniel Chastain, a former manager at OpenSea, following a federal appeals court's overturning of his convictions. They entered a deferred prosecution agreement, allowing the case to be dismissed after a month. Chastain had already served part of his sentence, including three months in prison, and agreed to forfeit 15.98 Ether. The appeals court ruled that the jury was improperly instructed, marking a significant moment in the legal landscape for digital assets.

- US prosecutors will not retry their insider trading case against Nathaniel Chastain after a federal appeals court overturned his convictions.  
- The Manhattan US Attorney cited Chastain's prior prison time and agreement to forfeit $47,330 as factors in the deferred prosecution agreement.  
- This case represents the first digital asset insider trading prosecution in the US and has implications for future legislation surrounding digital assets.

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US prosecutors abandon OpenSea insider trading case