Lawsuit Filed Against OpenSea As Users Get NFTs Locked

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?

https://twitter.com/franklinisbored/status/1555932929288818688

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.

https://twitter.com/jesseshalfon/status/1555245981972709376

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.

Image Courtesy: Opensea

The suit was filed in small claims, and is not a class action lawsuit, due to Opensea's Terms of Service.

https://twitter.com/LooksRare/status/1555937837635477504

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