OpenSea Faces Lawsuit For Failing To Ensure Its NFT Marketplace’s Security

An NFT collector, having unintentionally traded an NFT of Bored Ape Yacht Club for $26 because of a listing issue on the OpenSea platform, has submitted a legal filing for $1M to meet the damages. OpenSea is undergoing the lawsuit as it has allegedly been unsuccessful in guaranteeing the security of the NFT market thereof.

OpenSea confronts a legal case for slackness

The former owner of an NFT (non-fungible token) from the series of Bored Ape Yacht Club is prosecuting the NFT platform OpenSea as his NFT got sold for only $26 over the NFT marketplace.

The respective NFT collection’s floor price was more than $200,000. The NFT owner named Timothy McKimmy has referred to the software-based bug of OpenSea in the legal filing. The lawsuit demands the company to recompense $1M to cover the damages as OpenSea has been accused of failing to provide the marketplace with security.

On February 7th this year, the NFT named Bored Ape #3475 got sold in return for just 0.01 Ether (nearly $26). As per McKimmy, the sale took place without the permission of the owner, and the item was not listed by him. The purchaser swiftly bought the item and resold it for up to 98.9 Ether (almost $308,445).

In 2021’s December, McKimmy recompensed 55 Ether to purchase the respective NFT. The legal complaint, which has been registered under the federal court of Texas, OpenSea has been accused of being negligent in carrying out its activities without resolving the serious bug.

The continued listing bug

According to the lawsuit of McKimmy, the piece (which was snatched from him) is placed between the prominent 1,400 NFTs of the Bored Ape Yacht Club series as the rarity is concerned. The purpose of filing the respective case is to be compensated with $1M on the behalf of OpenSea.

Rather than shutting down the platform thereof to identify and correct the respective security-related problems, the defendant kept on doing its normal operations, as mentioned by the petitioner.

Thus, the complainant added in the filing, the NFT venue put the security of its consumers’ digital vaults and NFTs at stake by continuously gathering 2.5% from each of the transactions. In the meantime, OpenSea has not yet made any comment on the case. For the first time, the listing bug of OpenSea was reported on 24th January on the behalf of a Twitter post published by TBALLER.eth.

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