OpenSea continues to be controversial. While many NFT owners have taken their huge losses, one victim decided to sue.
Timothy McKimmy is an NFT collector who sued OpenSea NFT marketplace after losing his Bored Ape Yacht Club NFT because of what he called a malicious attack.
How Thimothy McKimmy lost the Bored Ape Yacht Club NFT
Thimothy McKimmy, who goes by the name McKimmy on OpenSea, explained that a hacker used a security flaw to illegally access Thimothy McKimmy’s wallet to sell his Bored Ape Yacht Club NFT for 0.01 WETH.
The price of Ether on February 21st 2022 would be $25.73. This is almost equivalent to giving away the token, considering that the floor price for the collection is 91.9 Ethereum, according OpenSea’s data.
NFTs are unique tokens and therefore it is impossible to establish a price for them all in the same way as ETH or BTC. To denote the minimum price sellers will accept for their tokens at any given time, there is a price floor. The cheapest Bored Ape currently costs 91.9 Ethereum or $236K. Ouch!
McKimmy’s Ape, which was lost by him, is up for sale right now for 225 Ethereum, or $607K OpenSea. McKimmy claims that the owner refused to give McKimmy his Ape back.
McKimmy’s Bored Ape Yatch CLub NT is being sold in Opensea for 225ETH. Opensea
OpenSea and Phishing Attacks
Cryptopotato reported that a group OpenSea users started reporting that their tokens had been stolen after they fell prey to a massive phishing attack.
The attacker used a crucial moment to launch his fraud. OpenSea was updating the smart contract to protect users against previous malicious acts. OpenSea sends emails to users asking for their authorization to update the contract.
Evidently, the attacker used this opportunity to trick users into signing a malicious program that would give him control over their wallets. That’s how McKimmy’s precious Ape was sold for $20.
McKimmy claims that OpenSea has “failed” to implement policies to prevent, detect, detect, respond, mitigate, contain and/or correct security breaches. He is asking for payment for the “Valuation of the Bored Ape” and/or monetary damage exceeding $1,000,000
Marla Brooks – Financial Analysis
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