Shoutout to all NFT holders- Here’s something you should know

ambcrypto.com:

The NFT market is set to face another big test as bearish headwinds continue to crash floor prices. The latest scrutiny will be confronted in a legal battle now.

Former OpenSea manager, Nathaniel Chastain, recently claimed that the United States wants to set a precedent after accusing him of insider trading. Chastain’s legal team has filed a motion to dismiss the charges against him.

According to Reuters, Chastain was accused of buying 45 NFTs on 11 separate occasions based on confidential information.

He also invested in tokens introduced by NFT creators that were yet to be sold via OpenSea. Prosecutors said Chastain chose which NFTs to feature, and sold his NFTs shortly after they were featured, typically for two to five times of what he paid. Chastain’s legal team said,

“The government has brought the instant prosecution using ill-founded applications of criminal law to set precedent in the digital asset space. While seeking to use this first-of-its-kind prosecution to posit broad assertions of insider trading, property theft and money laundering, the government’s arguments are contrary to years of settled precedent and are a transparent effort to plant a flag in the blockchain industry.”

On the other hand, NFT lending protocol BendDAO proposed emergency measures to keep the ecosystem afloat. According to the latest reports, the protocol is left with only 12.5 wETH worth over $23,00 to pay back its debts which amount to 15,000 ETH.

There are several reasons being cited for the crash of the NFT market. Several high-profile NFT collections lost their floor prices adding to the macro-turbulences in the global financial system.

The proposal is likely to get accepted as 97% of voters are in favor of the motion.

The collapse of the