OpenSea accused of theft, negligence, and extortion in $500,000 lawsuit

OpenSea accused of theft, negligence, and extortion in $500,000 lawsuit

OpenSea, a well-known NFT (Non-Fungible Token) marketplace, has been hit with a lawsuit from a user who claims the company was responsible for stealing their valuable digital assets.

OpenSea is facing security and fraud concerns

NFT marketplace OpenSea is facing security and fraud issues. According to some account holders. The user alleges that OpenSea was negligent in protecting their NFTs, which led to the theft. Additionally, they accuse the company of extortion, stating that OpenSea demanded payment to return the stolen NFTs.

The lawsuit, with a demand of $500,000, is a significant event in the evolving NFT industry and could have a lasting impact on users’ trust in NFT marketplaces.

According to the lawsuit, OpenSea allegedly locked the user’s account for three months instead of swiftly taking action to retrieve the stolen property and prevent its resale, the NFT marketplace 

During this time, the user claims to have suffered substantial losses on the 58 NFTs in their account, as they could not trade them. Currently, the two stolen NFTs that have been blacklisted can be viewed on OpenSea, with a cautionary notice that the items cannot be bought or sold due to suspicious activity.

OpenSea’s criticized for lack of transparency in response to NFT theft

Acres, the victim of the theft of his NFTs, is taking legal action against the NFT marketplace, OpenSea (a trading name of Ozone Networks Inc), to recover his losses. The thief sold the stolen NFTs for 0.5 and 0.7 WETH. However, Acres estimates his failure to be as much as $500,000 due to the inability to trade his remaining NFTs on OpenSea.

The initial response from OpenSea regarding the situation has been criticized for its lack of transparency. As stated in the company’s official statement, the theft occurred outside of OpenSea’s jurisdiction, and the items were sold before the company became aware of the reported theft. 

However, according to information provided by Mr. Acres, this portion of the statement needs to be more accurate, as OpenSea was reportedly informed of the theft before the sale occurred.

According to the information on Etherscan, the transaction hash of the theft was recorded at 01:38 PM UTC and can be found at the following link: 

The second sentence of the statement has also been met with criticism for being misleading. The statement implies that the user’s account was promptly unlocked after the NFTs were disabled, but this was not the case. Mr. Acres’ account was inaccessible for a duration of three and a half months.

The subsequent sale of the stolen NFTs occurred precisely one hour later at 02:38 PM UTC, and the transaction hash can be viewed at the following link:.

Mr. Acres’ account was locked after he expressed frustration with OpenSea’s failure to prevent the sale of the stolen NFTs.

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