$1M lawsuit filed against NFT marketplace OpenSea by BAYC collector

OpenSea Lawsuit

Not long ago, the biggest NFT platform witnessed a phishing attack. Almost $2 billion worth of NFTs were stolen by a hacker and affected around 32 users. The CEO acknowledged the phishing attack via Twitter. Now today a Bored Ape owner has filed a $1M against OpenSea where he lost the most valuable bored ape NFT worth $200,000 for just $26.

It seems like, OpenSea has gotten itself into a pool of controversies ever since the phishing attack happened.

A Texas resident, Timothy McKimmy rightfully purchased Bored Ape #3475, one of the popular bored ape NFTs of the platform. Where the NFT was sold for $26 unknowingly, the owner has alleged the platform about a bug in the system network allowing hackers to buy NFTs at cheap rates. Timothy is affirmative that the sale occurred without his permission and that he did not list the NFT for bid. According to McKimmy, the bored ape NFT stands 14th in rank for its rarity and significantly rarer than Justin Bieber’s Bored Ape NFT.

The complaint, filed against OpenSea in the Texas Federal Court by Timothy, claims that the stolen NFT was then resold by the hacker for 99ETH ($250,000). Also, the owner is certain that OpenSea knows about the bug but refuses to fix the problem. Besides, the legal complaint against OpenSea does reports about the negligence of the issue and continuing to operate with critical vulnerability.

McKimmy states that OpenSea has failed to unleash policies and procedures to prevent, identify, contain, and correct security violations. He also demand payment for the valuation of the Bored Ape, and/or monetary damages over $1,000,000.

Persisting Issues with OpenSea

Along with McKimmy, many other NFT owners have complained about the selling of virtual assets below their floor prices. The owners defined the issue and told, their NFTs are transferred to another wallet to avoid paying the cancellation fee in the listing. When they tried to move their NFTs back in the OpenSea-linked address, the items quickly get sold out without their conformity. Although OpenSea has confirmed a reimbursement of 750 ETH to the affected victims.

Being the world’s biggest NFT marketplace, OpenSea is still a subject of many controversies. The marketplace has received several criticisms over their plans for initiating native token distribution for community members. Moreover, last year one of the key members of the team was caught has profited off NFTs. The Senior Executive then resigned from the position for insider trading allegations.

Also, read - All you need to know about the Bored Ape Yacht NFT collection

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