Washington DC Attorney Faces SEC Insider Trading Charges

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Romero Cabral da Costa Neto, a visiting attorney at a renowned global law firm, has been thrust into the spotlight following insider trading charges announced by the Securities and Exchange Commission (SEC). This incident, coupled with a recent case in the digital asset market, underscores the evolving challenges of insider trading in both traditional and modern financial landscapes.

Romero Cabral da Costa Neto’s Alleged Misconduct

According to the SEC’s complaint, in 2023, Costa accessed confidential information about the biopharmaceutical company Swedish Orphan Biovitrum AB’s acquisition of CTI BioPharma Corp. (CTIC). On May 9, 2023, a day before the deal’s public announcement, Costa allegedly purchased over 10,000 shares of CTIC. He is accused of selling these shares on the announcement day, realizing a profit exceeding $42,000. The SEC alleges that Costa’s trading activities extended to securities of several other issuers represented by the law firm, closely timed with their significant announcements.

Nicholas P. Grippo, Regional Director of the Philadelphia Regional Office, remarked, “As alleged in our complaint, Costa violated his duties to the law firm and its clients when he abused his position to enrich himself.” The case, originating from the SEC’s Market Abuse Unit’s Analysis and Detection Center, has also led to parallel criminal charges against Costa by the US Attorney’s Office for the District of Columbia.

Insider Trading Across Financial Realms

Insider trading is not an uncommon illegal financial misconduct, evident not only in traditional finance but also in the emerging crypto market. Nathaniel Chastain, the former head of product at OpenSea, was recently sentenced to three months in prison for insider trading involving Non-Fungible Tokens (NFTs). Chastain, responsible for selecting NFTs to be featured on OpenSea’s platform, was convicted of “fraud and money laundering” earlier this year. The US Department of Justice and the FBI highlighted this case as the pioneering insider trading scheme involving digital assets.

Chastain’s activities were unveiled post his 2021 departure from OpenSea. An internal investigation led to his resignation, and following his conviction, Chastain forfeited equity in OpenSea, reportedly valued in the millions.


The cases of Costa and Chastain serve as a stark reminder of the complexities and challenges posed by insider trading in both traditional securities and the burgeoning digital asset markets. As financial landscapes evolve, the need for stringent regulations and oversight remains paramount.

Image source: Shutterstock

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