BAYC NFT owner Sues OpenSea for $1M over Hack
OpenSea Is Sued
Timothy McKimmy issued OpenSea after unintentionally selling his Bored Ape NFT for 0.01 ETH, or $26. He claims that OpenSea knew about a bug that allowed hackers to buy NFTs. The NFTs were purchased for a fraction of their market value. He claims to be the rightful owner of Bored Ape #3475 in a federal court in Texas.
Bored Ape #3475 is one of a limited edition of 10,000 NFTs. He claims the NFT was “stolen” and that he did not list his Bored Ape for sale. He even claimed that the “buyer” resold his NFT for 99 ETH shortly afterward.
According to McKimmy, his stolen Ape NFT is in the top 14th percentile for rarity, making it far rarer than Justin Bieber’s $1.3 million Bored Ape NFT. McKimmy claimed that OpenSea was aware of the bug and is suing for “return of the Bored Ape and damages above of $1 million.” It was widely publicized, but the company refused to halt trading in order to maximize profits.
“Instead of shutting down its platform to address and rectify these security issues, Defendant continued to operate. As a result, the defendant risked the security of its users’ NFTs and digital vaults to continue collecting 2.5% of every transaction uninterrupted,” he wrote.
He has attempted to resolve the problem with OpenSea several times. He claims the company told him it was “actively investigating” the incident but did nothing else.
According to McKimmy’s complaint on NFT forums, OpenSea has approached other bug victims and offered them the floor price. Even if their specific NFT is worth more, OpenSea offered the victims a floor price. Moreover, they could only take advantage of the offer if they signed a non-disclosure agreement.
It’s possible that more lawsuits will be filed in response to the one that was filed on Friday. Other OpenSea customers who lost NFTs as a result of the bug are being sought by a law firm in the northeast. The firm is looking for complaints so that it can file a class-action lawsuit. One of the lawsuit’s goals, according to McKimmy, is to force OpenSea to tighten its security practices.
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