This week, a former owner of the Bored Ape Yacht Club ventures into unknown territory by bringing a lawsuit against top NFT marketplace OpenSea. The action comes after the prior owner of the Bored Ape was a victim of a platform flaw that involves dormant postings and allowed hackers to ‘buy’ the Ape for only 0.01 ETH.
Consider what we know from early aspects of the litigation and the precedent that this ruling may establish.
Late last week, a Texas homeowner filed the complaint, seeking over $1 million in damages or the return of his Bored Ape #3475. The individual claims that OpenSea was aware of the platform flaw that led in the 0.01 ETH sale of the Ape, which the owner allegedly did not offer for sale at the time it was abused.
The hacker obtained the Ape for 0.01 ETH and promptly resold it for 99 ETH, or over $250K at today’s market rates. The Ape is undoubtedly in the top 20% of rare; many Bored Ape Yacht Club NFTs at this level of rarity are worth in excess of $1 million, lending substantial credence to the financial numbers in this case.
According to the lawsuit, “rather than suspending its platform in order to address and remedy these security concerns, Defendant continued to operate.” Defendant jeopardised the security of its users’ NFTs and digital vaults in order to continue collecting 2.5 percent of all transactions.”
This is the first time a lawsuit of this kind has been filed against OpenSea, or any other NFT marketplace for that matter.
What Path Could This Take From Here?
Depending on how this case resolves, there is a strong possibility that it may establish precedent for future NFT litigation against markets — and this will be a case that all new NFT marketplaces will closely monitor. Whether you’re a bored Ape or not, there are significant NFT initiatives with significant monetary indications attached, and many persons are placing noteworthy faith in NFT markets.
The plaintiff asserts that he attempted to resolve the dispute directly with OpenSea but received no traction or activity from the marketplace. This is not the first time OpenSea has had hacking issues, as we’ve covered the subject in a number of pieces this year alone. Additionally, the platform has been embroiled in a legal battle with Larva Labs over the copycat project ‘CryptoPunks V1,’ which the marketplace just withdrew, which is keeping the OpenSea legal department rather busy.
The outcome of this newest case might have far-reaching consequences that extend far beyond the two people involved. We’ll keep you informed as the storey unfolds.
Also Read: A California Senator Introduces Legislation To Allow State Agencies To Accept Bitcoin
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