July 24, 2024
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The owner of the BAYC NFT is suing OpenSea for $1 million over the hack

NFT

After an exploit on the platform saw the NFT sold for a fraction of its market value. That’s, a former owner of a rare Bored Ape Yacht Club non-fungible token (NFT) is suing marketplace OpenSea for US$1 million for the token’s recovery.

Timothy McKimmy of Texas claimed the platform was aware of a problem that allowed hackers to buy NFTs below market value in a January exploit. But, then failed to take the necessary steps to fix it.

According to a complaint filed in federal court in Texas, a glitch allowed Bored Ape #3475 to be sold for 0.01 ETH (US$26). Without the owner’s knowledge, the suspected hacker promptly flipped the asset for 99 ETH (US$250,000).

OpenSea refunded users who lost their NFTs in the hack 750 ETH (US$1.8 million). But McKimmy stated he was unsatisfied with his attempts to negotiate a direct resolution with OpenSea.

“Defendant continues to function instead of shutting down its platform to address and remedy these security issues.”

The complaint claims that
“Defendant put the security of its users’ NFTs and the digital vaults at risk in order to”
” continue collecting 2.5 percent of every transaction without interruption.”

Disgruntled consumers have migrated to competing markets. That’s, after the world’s largest NFT platform was recently proven to be at the core of legal issues and frauds.

So, This week, OpenSea was the victim of a phishing fraud that targeted consumers in a US$1.7 million NFT heist. However, some have already been restored.
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