OpenSea NFT Marketplace Faces Legal Action for Alleged Lack of Security

A collector of nonfungible tokens (NFTs) has initiated legal action against the OpenSea NFT marketplace for a number of alleged transgressions, one of which is that he was prevented from accessing his account for more than three months as a consequence of falling prey to a phishing scheme. “It took them more than forty-eight hours to reply, and by that time, the stolen goods had already been sold at a drastically reduced price since the buyer had prioritised speed above value.”

In addition, the NFT marketplace took action and locked his account to prevent any more harm from occurring.

Acres, on the other hand, claims that this was not the answer he was looking for. ” Despite my continuous requests to liberate my assets, OpenSea kept my assets for ransom for almost three months,” he stated. In addition to this, the investor claims that in order to unlock his account, OpenSea asked him to provide a statement in which he lied under oath.

The NFT investor is of the opinion that the marketplace ought to be held responsible for the losses that were sustained during the period in question.

Acres is certain that the damages that have been assessed as a result of OpenSea’s conduct total $500,000 in total.

As a result of this, Acres sought the assistance of legal counsel in order to pursue legal action against OpenSea.

The attorney verified that there are several clients struggling with the same problem.

Schaefer elaborated as follows: “On the OpenSea marketplace, I have had conversations with and represent multiple clients who have had their NFTs stolen or their accounts hacked in some way.

In some circumstances, OpenSea will take responsibility for its mistakes and make the account holder whole again.

In other cases, OpenSea chooses to just disregard the problem.

Aside from this, the attorney made the following observation: “OpenSea must not let itself be distracted by growth, investor money, or gross income; instead, it should concentrate on the individuals who purchase and sell non-fungible tokens (NFTs), its consumers. The alleged theft occurred outside of OpenSea, and the products were sold before OpenSea became aware that the crime had been reported. As soon as we were made aware of the situation and received notification of it, we deactivated the products in question, and the user’s account has been unlocked ever since.”

In addition, the platform said that it has made investments in equipment and employees in order to prevent and identify theft and put a stop to the resale of things that have been stolen via its platform.

The NFT marketplace implemented a new regulation regarding stolen items on August 11, 2022, with the intention of incorporating and expanding the usage of police records.

In reaction to this, a number of users have taken to Twitter to assert that OpenSea was unable to assist them in recovering their NFT after it was stolen.