Wall Street Journal Quotes Ian McGinley on NFT Case and Insider Trading
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For its article “NFT Prosecution Sparks Debate Over Insider-Trading Label for Digital-Token Cases,” The Wall Street Journal has quoted Akin Gump white collar defense and government investigations partner Ian McGinley.
The article discusses how a federal judge has allowed the U.S. Department of Justice to use “insider trading” as a way to describe the alleged crime in a first-ever case on nonfungible token, or NFT, trading, despite the fact that prosecutors did not bring traditional insider-trading language.
WSJ notes that lawyers for the accused argue that prosecutors should not be able to use the term “insider trading” because federal regulators have not formally identified NFTS as either securities or commodities, the usual prerequisites for bringing insider-trading charges.
McGinley, who served as an Assistant U.S. Attorney in the Southern District of New York, where he was Co-Chief of the Complex Frauds and Cybercrime Unit, and a member of the Securities and Commodities Fraud Task Force, said that NFTs are not necessarily known to a broad audience, and the allegations against the accused in this case might be difficult for some jurors to understand. However, he said, “Insider trading is a theme jurors understand.”