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NFT faucet sues OpenSea for account suspension after fraud

NFT faucet sues OpenSea for account suspension after fraud

A non-fungible token (NFT) faucet is suing the OpenSea NFT marketplace on several charges, including having its account suspended for more than three months after it was the victim of a phishing scam.

OpenSea user Robbie Akres told Cointelegraph that after his NFTs were stolen via a phishing scam, he immediately reported it to the NFT marketplace. However, the NFT faucet claims to have encountered many difficulties. Akres explained that:

“It took them over 48 hours to respond, by which time the stolen assets had been sold as the buyer had vastly underpriced them, favoring speed over value.”

In addition, the NFT marketplace also reacted by blocking his account to prevent further damage. However, according to Akres, this was not the decision he asked for. “OpenSea held a ransom on my assets for more than three months despite repeated requests to unlock my assets,” he added.

One of two stolen NFTs. Source: Robbie Akers

The NFT investor believes that the market should be held responsible for losses incurred during this time. Acres is convinced that the estimated losses due to OpenSea’s actions are $500,000.

“Intentionally or ineptly, OpenSea’s actions caused me significant financial damage as I am an active investor in the Web3 community,” he said. Because of this, Acres enlisted the help of lawyers to take action against OpenSea.

Enrico Schaefer, a lawyer who leads Acres’ legal team, said this is not an isolated case. The lawyer confirmed that several people are dealing with the same issue. Schaefer explained:

“I have spoken to and represented several people who have had NFTs stolen or account hacked on the OpenSea marketplace. In some cases, OpenSea admits its mistakes and exonerates the account owner. In other cases, OpenSea simply ignores the issue.”

In addition, the lawyer noted that “OpenSea should focus on its customers, people buying and selling NFTs, and not be blinded by growth, investors’ dollars and gross income.”

Connected: New NFT Private Auction Scam Threatens OpenSea Users

When asked about the problem with Acres, an OpenSea spokesperson told Cointelegraph that:

“The theft in question took place outside of OpenSea and the items were sold before OpenSea became aware of the theft. Shortly after we received the notification and became aware of this, we disabled the items and the user’s account has since been unlocked.”

In addition, the platform indicated that it has invested in tools and personnel to prevent and detect theft and stop the resale of stolen items on its platform. They wrote:

“Theft is one of the biggest and most complex ecosystem issues to address because it happens on many different digital surfaces and through many unique (and legitimate) communication channels.”

On August 11, 2022, the NFT Marketplace implemented a new policy on stolen items that includes and expands the use of police reports. In response, some users tweeted that when their NFT was stolen, OpenSea was unable to help.