OpenSea NFT Marketplace faces legal action for alleged lack of security

A collector of non-fungible tokens (NFTs) has initiated legal action against the OpenSea NFT marketplace for a series of alleged violations, one of which is that he was prevented from accessing his account for more than three months as a result of have fallen victim to a phishing scheme. “It took them more than forty-eight hours to respond, and by that time the loot had already been sold at a drastically reduced price since the buyer had prioritized speed over value.”

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

Acres, for his part, claims that this was not the answer he was looking for. “Despite my continuous requests to release my assets, OpenSea held my assets for ransom for almost three months,” he said. 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 should be held responsible for the losses incurred during the relevant period.

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

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

The lawyer confirmed that there are several clients struggling with the same problem.

Schaefer elaborated as follows: “In the OpenSea market I have had conversations with and represent several clients who have had their NFTs stolen or their accounts hacked in some way.

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

In other cases, OpenSea chooses to simply ignore the problem.

Apart from this, the lawyer made the following observation: “OpenSea must not be distracted by growth, investor money or gross revenue; instead, it should concentrate on the individuals who buy and sell non-fungible tokens (NFT), its consumers. The alleged theft occurred outside 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 disabled the affected products and the user’s account has been unlocked ever since.”

In addition, the platform said it has made investments in equipment and staff to prevent and identify theft and put an end to the resale of items stolen through the platform.

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

In reaction to this, a number of users have taken to Twitter to claim that OpenSea was unable to help them recover the NFT after it was stolen.