Who’s Who in the Case
The three-judge panel included Steven Menashi, José Cabranes, and Richard Wesley.
Chastain was represented by Shapiro and Jason Driscoll of Shapiro Arato Bach LLP, along with David Miller and Daniel Filor of Greenberg Traurig LLP. The government’s team included Nicolas Roos, Thomas Burnett, and Allison Nichols of the U.S. Attorney’s Office.
A Precedent for Crypto Law?
The ruling underscores the legal murkiness of applying traditional fraud statutes to the fast-moving world of blockchain and digital assets. While Chastain’s actions may have tested ethical boundaries, the Second Circuit determined they did not squarely fit the mold of federal wire fraud.
The decision could ripple through future cases involving insider knowledge in crypto markets, where the definition of “property” remains hotly contested.
