OpenSea admits there was insider trading during NFT sale

Scandal ensues after NFT platform owns up to discovering an employ may have been behind suspicious purchase and resale

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.

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.

Soon after the re-sale, the anonymous wallet relocated approximately 7 ETH to a different account.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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