OpenSea Slammed With Lawsuit By Three BAYC NFT Owners

Frequent attacks on OpenSea, the largest Non-Fungible Token (NFT) marketplace, have enraged many users. Users who lost access to their NFTs have already filed three distinct complaints against OpenSea.

The victims of the NFT hack accuse OpenSea of incompetence.

Timmy McKimmy, Michael Valise, and Robert Armijo have individually sued the famous NFT marketplace, according to Artnews. They each lost access to their Bored Ape Yacht Club (BAYC) NFTs under suspicious circumstances.

McKimmy, a Texan, and Valise, a New Yorker, both lost their Apes in a February breach that took advantage of a security flaw in OpenSea's programming. According to McKimmy's lawyer, the OpenSea hacker listed and bought his Ape for 0.01 ETH before selling it for 99 ETH.

“Exploiting a security vulnerability, the hacker made an offer, hacked the code, and accepted the offer on behalf of Mr. McKimmy. So he basically sold it to himself and within the hour sold it to another user.” the lawyer stated.

Valise likewise lost his Ape as a result of a similar chain of events. They are suing the platform for carelessness, as a result of which they were unable to participate in the latest ApeCoin token airdrop.

Meanwhile, Armijo claims to have been the victim of a social engineering attack that was not prevented due to OpenSea's incompetence. A Discord hack cost Armijo a BAYC and two MAYC.

He claims to have attempted to contact OpenSea following the hack in order to get the NFTs banned and frozen in the event of a listing. The stolen BAYC had already been advertised and sold when OpenSea replied, and the exchange had successfully froze one of the MAYC NFTs.

Armijo is also suing LooksRare for similar reasons, claiming that they neglected to reply until the hacker posted and sold his second MAYC.

“OpenSea has prioritized growth over consumer safety and the security of consumer’s digital assets,” he stated in his complaint.

Vulnerability issues at OpenSea are a problem that affects the entire industry.

The legal complaints against OpenSea have gone unanswered. The platform's latest vulnerabilities, on the other hand, are well known. Phishing assaults on the platform resulted in the loss of nearly $1.7 million in NFTs in February.

A surge of copyright infringement litigation has also impacted the NFT industry. NFT projects have been sued by a number of companies, including Nike and Hermes.

Similarly, OpenSea has not been the only company to suffer from security flaws. In Q1 of 2022, scammers stole over $1.2 billion worth of digital assets. According to SlowMist data, NFTs projects were the most commonly exploited.

Regardless, the NFT industry's popularity and worth continue to rise. Multiple new patents for NFTs and metaverse-related research have been submitted in the industry, which had over $40 billion in sales volume in 2021.