According to Opensea’s terms of service, the platform is able to “lock” stolen NFTs, preventing it from being transferred, sold, or listed.
But what if you legally bought a stolen NFT?
My OpenSea account with my apes shows that it's compromised. OpenSea (not me) marked it, and it doesn't need to be marked. 🧵
— Franklin has 60 apes (@franklinisbored) August 6, 2022
That is exactly what has been happening to many users on the sight. With many high profile hacks recently, users who then purchase these “fraudulent” NFTs are left holding the bag.
Often, their whole accounts get locked, and they are unable to transfer or list any assets, despite having done nothing wrong.
Filed a lawsuit against @opensea today based on their ‘broken’ stolen NFT policy.
— Jesse Halfon (@jesseshalfon) August 4, 2022
I believe this template could be the impetus which forces a long overdue change to the system. 🧑🏻⚖️📝🌊@punk9059 @NFTinitcom @CapetainTrippy @iamDCinvestor @0xZubic @SpeculatorArt pic.twitter.com/Mda6VL3nIT
Lawyer and crypto enthusiast, Jesse Halfon , has taken these issues to court. In an attempt to bring justice to users, he may just force a change in Opensea’s policy.

The suit was filed in small claims, and is not a class action lawsuit, due to Opensea’s Terms of Service.
Having a policy to protect your ass, fine, we get it.
— LooksRare (@LooksRare) August 6, 2022
It being so incredibly lax and even wrongly implemented? Not okay. Not at all.
This saga continues to destroy value and hurt innocent buyers and sellers in the space.
Sort your shit out @opensea. https://t.co/SiNe1SY4O5 pic.twitter.com/zClmdMWScv
Big names, including both platforms and individual NFT personalities have also commented on the situation.
At the time of writing, Opensea has not issued a statement regarding the lawsuit.
Also Read: Magic Eden: Solana-Based NFT Marketplace Targets Ethereum For Expansion
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: The Verge