Breaking: Three BAYC NFT Owners Slams OpenSea With Lawsuit

By Olivia Brooke
April 12, 2022 Updated April 12, 2022
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Online NFT marketplace OpenSea now has a total of three separate lawsuits against them from different complainants who have lost their assets in some of the hacks the platform has suffered since its inception as well as negligence.

Opensea Continues to face multiple pushbacks

Michael Valise and Timothy McKimmy slammed the American digital marketplace with separate lawsuits following the loss of their NFTs in a similar hack which took advantage of an apparent security vulnerability in the platform’s code.

McKimmy filed a lawsuit against OpenSea on February 18 alleging that his NFT was stolen via a security glitch that OpenSea, though aware of, chose to overlook.

As clarified by Ash Tadghighi, McKimmy’s lawyer, OpenSea gives users the ability to connect their wallets to the platform; and as a consequence, NFTs on such wallets that are not yet listed on the platform can be seen by other users who can make offers on them.

The hack occurred on February 7 with an anonymous user making an offer for a meagre 0.01 ETH ($26 at the price of ETH then), hacking the platform’s code and accepting the ridiculous offer on behalf of McKimmy. In essence, they sold the NFT to themselves at a grossly underpriced value.

The lawsuit claims are massive

After which they sold it to another user at a value of 99 ETH ($257k) – a price which McKimmy still believed was below the worth of his BAYC asset as he claimed his NFT ought to have gone for $1.3m judging by its rarity.

Upon choosing to represent McKimmy in his unprecedented lawsuit, lawyers Ash Tadghighi and Andrew Dao received several offers to represent others in similar cases. They chose to pick up Michael Valise’s case who suffered a similar ordeal dating back January 26.

Robert Armijo’s case, on the other hand, involved inexplicable delays in response time from OpenSea. Armijo lost three of his valuable NFTs – two Mutant Apes and one Bored Ape – upon clicking a fraudulent link sent to him by a user he met on the Cool Cats Discord server. He claims to have purchased them for $300k.

Armijo argues that inasmuch as the hack did not occur on OpenSea, OpenSea contributed to his loss by not responding on time when he contacted them via several means to freeze the assets upon upload on the platform so they could not be sold.

The assets were later sold off on OpenSea; and after responding a little too late to his plea and freezing the listed Mutant Apes, the hacker listed the assets on LooksRare – another NFT marketplace – selling them almost immediately. Armijio has chosen to include LooksRare in his lawsuit.

OpenSea has in times past suffered several hacks which have seen users’ assets either get stolen or sold off for underpriced values. It looks to be seen what measures the platform is looking to take to curb this growing issue especially now that they have three lawsuits to attend to because of it.

 

Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them. She’s actively on the lookout for the latest Crypto related stories. When she’s not writing, she’s catering to her pet chihuahua, or curating vegan recipes. Reach me at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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