NFT platform OpenSea has launched an internal investigation after discovering one of its employees may be guilty of insider trading.
The world’s largest NFT marketplace confirmed an employee was using confidential information to purchase private NFT (non-fungible token) artworks and immediately reselling them publicly at an inflated price.
According to OpenSea, eagle-eyed Twitter users exposed some crucial details that pointed to the activity.
About 8 minutes later, Wallet B buys 4 pieces from the "Dailydust Collection". One in particular for .25 ETH named "Spectrum Of A Ramenfication Theory"https://t.co/EO7bjbSxhU pic.twitter.com/AZacOYpuHi
— ricefarmer.eth 🍚 (@RiceFarmerNFT) September 15, 2021
In its statement, OpenSea described the revelation as “is incredibly disappointing”.
“Yesterday we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly,” it said.
Trading records show that, at 1.05am in New York on Tuesday, a user bought “Spectrum of a Ramenfication Theory” for 0.25 ETH ($880).
According to the available information, it was resold for a six-fold return 21 minutes later, rousing suspicion among observers.
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