Crypto Stories

OpenSea Refunds $1.8 M To Users; What Went Wrong?

By Gitumani Talukdar
Published January 29, 2022 Updated February 2, 2022

OpenSea, a NFT marketplace, said on Thursday that it had refunded consumers $1.8 million. The bug used by hackers causes some of the company’s most knowledgeable clients to unintentionally sell their most precious NFTs for significantly less than market value.

What Went Wrong?

According to the company, hackers used an internal system issue to “take” over $1 million in NFTs from OpenSea’s most sophisticated clients earlier this week. OpenSea, on the other hand, answered that this was “neither an exploit nor a flaw,” but rather “a problem that occurs due to the structure of the blockchain.” Users cannot cancel listings using OpenSea. Instead, according to ZDNet, customers must deactivate their listings.

According to Elliptic, a blockchain security firm, hackers used the issue to acquire previously listed NFTs incredibly cheaply at their earlier posted pricing, then sell them at considerably higher market rates. OpenSea reimbursed a total of 750 Ether to over 130 wallet items. The data is according to data given by the company. After widespread criticism that it had failed to adequately resolve a user interface feature. It allowed unknown third parties to acquire over $1 million worth of NFTs at a discount.

What Will Happen Next?

One of the attackers identified as ‘jpegdegenlove’ reportedly purchased $133,000 for seven NFTs and then sold them for $934,000 on the site. At least three attackers were identified by Elliptic security experts who bought at least eight NFTs for “far less” than their market worth – assets. It is from some of the industry’s most respected collections.

It also includes Bored Ape Yacht Club (BAYC), Cool Cats, and Mutant Ape Yacht Club. Since the problem was initially noticed earlier this week, OpenSea has introduced a “Listings” option to users’ accounts that enables them to see both active and inactive listings of their NFT products, according to the company’s Twitter account.