The U.S. Justice Department has elected to cease its prosecution of Nathaniel Chastain, previously a manager at OpenSea, due to the successful appeal of his convictions for wire fraud and money laundering.

Prosecutors informed a Manhattan federal court on Wednesday that they entered a one-month deferred prosecution agreement following the appeals court’s ruling, after which the case will be dismissed officially.

In their correspondence, Manhattan US Attorney Jay Clayton stated that the choice resulted from Chastain serving parts of his original sentence, including three months of imprisonment, and that he has agreed not to contest the forfeiture of 15.98 Ether (ETH), valued at $47,330, which prosecutors claimed he acquired through illicit activities.

“The interest of the United States will be best served by deferring prosecution of this matter and not retrying the case,” Clayton remarked.

Chastain’s conviction stemmed from allegations that he used insider knowledge to purchase NFTs featured on OpenSea, selling them after their market value rose. An appeals court overturned his conviction in July due to flawed jury instructions and the determination that NFT homepage data lacks commercial value under federal wire fraud statutes.

This case represents the inaugural digital asset insider trading incident in U.S. history, prompting calls from the crypto community for clearer regulations surrounding the classification of digital assets in current laws.

Chastain is free from oversight by U.S. Pretrial Services and may apply for the refund of the $50,000 fine and $200 special assessment imposed during his earlier conviction.

His situation adds to the expanding list of crypto-related investigations, lawsuits, and prosecutions that the Justice Department and regulators have dismissed for procedural or evidentiary reasons.