NFT Evening NFT Evening
    Facebook Twitter Instagram Reddit
    NFT Evening NFT Evening
    • News
      • Collectibles
      • Crypto Art
      • Blockchain games
      • Metaverse
      • Music
      • Interviews
    • Guides
      • Top NFT Projects
      • Top Blockchain Games
      • NFT Marketplaces and Tools
    • Learn here!
      • What is an NFT?
      • How to keep your NFTs safe
      • NFT Glossary
    • NFT Calendar
      • NFT Drops
      • NFT Conferences
      • NFT Launchpad
    • Newsletter
    NFT Evening NFT Evening
    News

    Home » News » OpenSea Faces Lawsuit Over “Broken” Stolen NFT Feature

    OpenSea Faces Lawsuit Over “Broken” Stolen NFT Feature

    By James EllisAugust 6, 2022Updated:September 20, 20224 Mins Read
    Contents hide
    The lawsuit against OpenSea for its stolen NFT policy
    How does the lawsuit against OpenSea work?
    NFT community members hope to join the OpenSea lawsuit
    What is the OpenSea stolen NFT policy?
    Issues with the NFT policy

    The world’s largest NFT marketplace, OpenSea, is facing a lawsuit over its stolen NFT policy. Jesse Halfon is leading the case against the company. Notably, he is an attorney/strategic advisor for NFTs, DAOs, and deals with IP Law for creators & platforms. In response to the announcement, others have asked to join the lawsuit against OpenSea. Although it is not a class action right now, the support of the wider community suggests it could become a possibility.

    Image of the OpenSea lawsuit about stolen NFT
    Attorney Jesse Halfon has filed against OpenSea for its stolen NFT.

    The lawsuit against OpenSea for its stolen NFT policy

    The lawsuit by Jesse Halfon against OpenSea focuses on its NFT policy regarding how it deals with ‘stolen’ NFTs. This is not the first time that the policy has come under scrutiny.

    The policy has been the subject of frustration and concern from large numbers of the NFT community. With this official lawsuit ongoing, it will also be interesting to see if there is any change from OpenSea.

    In a tweet, @JesseHalfon announced the lawsuit, with the accompanying document, filed in the State of Michigan. He said, “Filed a lawsuit against @opensea today based on their ‘broken’ stolen NFT policy. I believe this template could be the impetus which forces a long overdue change to the system.”

    How does the lawsuit against OpenSea work?

    Like many others in the NFT community, Jesse is fed up and wants a change in policy from OpenSea. To do this, he has filed a lawsuit via the small claims court to take action. Furthermore, Jesse hopes this will be a wake-up call to the hugely popular NFT platform. 

    Because of the OpenSea terms and conditions, the lawsuit against their stolen NFT policy is for arbitration. Most online user agreements state that people must resolve claims this way.

    NFT community members hope to join the OpenSea lawsuit

    Although many people have asked to join the lawsuit, taking class action is also tricky. Significantly, the OpenSea terms also ban class action suits. The terms state, “All claims and disputes within the scope of the arbitration agreement must be arbitrated on an individual basis and not on a representative or collective class basis.”

    However, in later tweets, Jesse stated that although this does make the possibility of a class action case unlikely, it is not impossible. He also hinted that he has some ideas on how to work around the terms of service for a class action lawsuit against OpenSea.

    Image of OpenSea on a mobile phone workforce
    The OpenSea stolen NFT policy has caused some controversy in the NFT community.

    What is the OpenSea stolen NFT policy?

    The official OpenSea policy prohibits the sale of stolen NFTs and does not allow these items on the platform. They state, ‘We take allegations of theft seriously, and when we are notified of potentially stolen items, we disable the ability to buy, sell, or transfer the items via OpenSea to make sure we comply with legal requirements protecting users.’

    Of course, it is essential to protect people’s assets, and at the heart of it, that is what OpenSea is trying to do. But, many in the NFT community are concerned about how the policy works.

    Issues with the NFT policy

    Some people have found their NFTs locked and are now unable to sell them. It is usually because previous owners of those NFTs have contacted the marketplace and identified them as stolen.

    Unfortunately for the people that now own the NFT and had no part in the theft, they are currently unable to sell their NFT. What’s more, the overall value of these NFTs stuck in limbo is in the tens of millions of dollars.

    The OpenSea lawsuit aims to address these issues and make all parties happy. Hopefully, now the conversation is happening across social media, OpenSea will look at how they can move forward with the policy.

    Join Our New "To The Moon" daily Newsletter

    Get our free, 5 minutes daily newsletter. Join 25,000+ NFT enthusiasts & stay on top 👊🌚

    Thank you!

    You have successfully joined our subscriber list.

    .

     


    All investment/financial opinions expressed by NFTevening.com are not recommendations.

    This article is educational material.

    As always, make your own research prior to making any kind of investment.

    nft lawNFT StolenOpenSea
    Previous ArticleWhat Is A cc0 NFT?
    Next Article Murder of Crows is a new and exciting NFT collection by YouTuber, Crypto Crow
    James Ellis
    • Twitter

    James is an English teacher and freelance writer with a passion for NFTs, football, film and technology.

    More great NFT Evening content:

    Art Blocks launches creator-friendly NFT marketplace

    March 30, 2023

    NFT Art Lands Pussy Riot Founder Nadya Tolokonnikova on Russia’s Wanted List

    March 30, 2023

    NFTb Welcomes My Neighbor Alice Token, ALICE, As First Native Token

    March 30, 2023

    Metamask Airdrop Rumors Dismissed by Metamask: Stay Safe!

    March 30, 2023

    Royal Mint Ditches NFT Project Amid Consultations With UK Government

    March 29, 2023

    Disney Metaverse Dreams Crushed in Layoff Bombshell

    March 29, 2023

    Virtual Fashion: Rozy’s Avatar Takes the Runway at Decentraland MVFW Dressed by Ilona Song

    March 29, 2023

    Otherside by Yuga Labs presents: Legends of the Mara

    March 29, 2023
    Latest NFT News

    Art Blocks launches creator-friendly NFT marketplace

    March 30, 2023

    NFT Art Lands Pussy Riot Founder Nadya Tolokonnikova on Russia’s Wanted List

    March 30, 2023

    NFTb Welcomes My Neighbor Alice Token, ALICE, As First Native Token

    March 30, 2023

    Metamask Airdrop Rumors Dismissed by Metamask: Stay Safe!

    March 30, 2023

    Royal Mint Ditches NFT Project Amid Consultations With UK Government

    March 29, 2023

    Y00ts Finally Makes the Move to Polygon!

    March 29, 2023

    Disney Metaverse Dreams Crushed in Layoff Bombshell

    March 29, 2023

    Virtual Fashion: Rozy’s Avatar Takes the Runway at Decentraland MVFW Dressed by Ilona Song

    March 29, 2023
    Get The FREE Exclusive Report
    CLICK HERE

    NFTevening is the biggest website for NFT news. We cover; breaking news, upcoming mints, plus, interviews with top NFT artists and projects. Put simply, we are the best place for new and experienced non-fungible token fans — making content fun & accessible

    Privacy policy
    Terms and conditions

    Article Categories
    • Blockchain games
    • Collectibles
    • Columns
    • Crypto Art
    • Guides
    • Interviews
    • Metaverse
    • Music
    • News
    • NFT Marketplaces and Tools
    • Sponsored Content
    • Top Blockchain Games
    • Top NFT Projects
    NFT Calendar
    • Today’s NFT Drops
    • Upcoming NFT Drops
    • Solana NFT Drops
    • NFT Calendar
    • NFT Calendar : Add Your NFT Event
    Get In Touch
    • Advertise (Media Kit)
    • Job Opportunities
    • About Us
    • Contact Us
    • Newsletter
    NFT Beginners Guides
    • How to Sell NFT Art
    • How to Create NFT Art
    • How to Display NFT Art
    • How To Make Passive Income With NFTs
    • Best Crypto Wallet
    • Best NFT Coins
    • Best NFT Rarity Tools
    • What is a DAO ?
    • What Are Crypto Gas Fees ?

    Type above and press Enter to search. Press Esc to cancel.