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Three NFT hack victims sue OpenSea for exposing users’ NFTs to theft due to inadequate security measures on its platform. However, despite the lawsuit, OpenSea continues to soar higher as it gains more popularity.
Three Owners of Ape NFT Stolen Sued OpenSea
In recent times, OpenSea, the biggest NFT marketplace, has suffered multiple hacks, which many users are not happy about. Three hack victims who lost their NFTs have filed three different complaints against the NFT marketplace.
Reports said that the three victims, Timmy McKimmy, Michael Valise, and Robert Armijo, claimed to have lost their Bored Ape Yacht Club NFTs to theft under questionable situations and have resorted to accusing the platform of negligence.
According to the report, in February, both McKimmy and Valise, from Texas and New Yoke, respectively, were dispossessed of their NFTs during a theft that exploited a weak security point in the NFT marketplace.
While filing a report, Mckimmy’s lawyer said that the perpetrator hacked and purchased his client’s Ape for a ridiculous price worth 0.01 ETH and continued to sell it to another user at a whooping price worth 99 ETH. He continued that the thief sold the asset to himself and was able to pull the stunt because of the weak security measures put in place on the platform.
Valise claimed that he suffered the same fate as he lost his Ape to a similar stunt as McKimmy’s. He claimed the platform’s negligence had cost him his NFT and an opportunity to partake in the recent Apecoin token airdrop.
Reports said Armijo’s case was quite different as he claimed to be exploited via social engineering attack due to OpenSea’s negligence. He continued that he lost a BAYC and two Mutant Ape Yacht Club NFTs via a Discord attack.
He added that if OpenSea had priority for users’ safety, he wouldn’t have lost his NFTs because as soon as he discovered a strange activity on his profile, he had tried to inform OpenSea to immediately blocklist and freeze the NFTs to no avail. He continued that by the time the platform responded, it was too late as the stolen BAYC had been sold; however, they were able to freeze one MAYC NFT.
He concluded that the hacker was able to hack, list, and sell the other MAYC on the LooksRare NFT platform because they refused to respond to his alert on time.
All NFT Industry Suffers The Same Security Issues as OpenSea
To date, OpenSea is yet to respond to the legal accusations against it. Nonetheless, every user is aware that the marketplace is prone to hacks. OpenSea alone recorded a loss of over $1.7million worth of NFT dey to hacks and attacks.
Many big companies like Nike, Hermes, and the like have filed legal complaints against different NFT marketplaces in the past over copyright infringement.
Hence, OpenSea is not the only marketplace suffering from attacks and lawsuits, its a common scenario for the NFT industry and Projects. Reports show that digital assets worth about $1.2 billion have been stolen in the first three months of 2022 alone, and NFT industries are the most frequently attacked.
However, despite the inability of the NFT industry to curb its frequent attacks, it doesn’t affect its growth as it continues to increase in popularity and worth. It recorded over $40 billion in sales volume in 2021, and many users keep trooping in to register daily.