But the New York Council of Defense Lawyers, an industry group of advocates, argues that prosecutors are trying to contort the law to turn workplace misconduct that they claim isn’t actual insider trading into a felony. They urged a judge to take the unusual step of throwing out the case before a jury sees it.
Because Mr. Chastain is charged under the relatively encompassing wire fraud statute, rather than the securities fraud statute commonly used in insider trading cases, prosecutors arguably won’t have to wrangle over the thorny question of whether a digital asset like an NFT is a security under the law.
A green light for prosecutors could “massively expand wire fraud to capture all sorts of workplace indiscretions” that might not even get an employee in trouble, let alone prosecuted, the NYCDL said in a filing last week.
‘Enforcement 40’ for 2020
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