DOJ’s Post-Chastain Playbook: How Insider Trading Theories Are Expanding Into Prediction and Crypto Markets

Introduction – Insider trading traditionally refers to trading public securities based on material nonpublic information (“MNPI”) in breach of a duty of trust, confidence, or loyalty. Liability can arise under multiple overlapping theories, including the classical theory (corporate insiders trading in their company’s securities), the misappropriation theory (outsiders obtaining and misusing a corporation’s confidential information), and tipping liability (individuals improperly sharing MNPI…
By: Cohen & Gresser LLP