NFT marketplace, OpenSea, is now facing a $1 million lawsuit after its user, an NFT collector, lost his rare Bored Ape to a hacker due to a security flaw in the platform.
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NFT OpenSea Lawsuit
As per a news story by Futurism, the owner of the NFT, Timothy McKimmy, who is a resident of Texas, is asking the largest NFT marketplace out there for a whopping $1 million in damages.
It comes after a hacker bought the Bored Ape collection of the plaintiff for a measly price tag way below the market price of the hyped NFT.
McKimmy unknowingly sold his rare Bored Ape #3475, which the plaintiff claims that he did not even list for sale due to a security flaw in the system of Open Sea.
A woman looks at a NFT by Larva Labs titled "CryptoPunk 7523" during a media preview on June 4, 2021, at Sotheby's for the Natively Digital: A Curated NFT Sale Online Auction to take place June 10, 2021. - They are technology enthusiasts on the hunt for opportunities in the Wild West market surrounding NFTs: the popular certified digital objects that have spawned a new generation of collectors convinced of their huge potential.
As such, the hacker only paid for the rare NFT for approximately $26 or .01 Ethereum, which is significantly below the average price tag of the Bored Ape Yacht Club collection that typically starts at a hundred thousand dollars.
The hacker then flipped the rare Bored Ape of McKimmy for a whopping $250,000 or 99 ETH.
Stolen Bored Ape NFT
According to a recent report by Engadget, Mckimmy disclosed in the lawsuit that his prized NFT was a rare Bored Ape.
He went on to claim that it was rarer than what the famous musician Justin Beiber bought for a staggering $1.3 million.
The plaintiff stated in the lawsuit against OpenSea that the stolen NFT was part of the top 14th percentile of the most expensive Bored Apes out there.
That said, McKimmy is not only asking OpenSea for hefty damages of up to $1 million, he is also demanding the return of his prized possession.
OpenSea Security Bug
On top of that, the owner of the rare Bored Ape is also claiming in the lawsuit that OpenSea knew about the security bug in its platform, which allows hackers to buy unlisted NFTs on the platform for measly prices.
However, the lawsuit says that "Instead of shutting down its platform to address and rectify these security issues, Defendant continued to operate."
Last Feb. 20, about $1.7 million worth of hundreds of NFTs on OpenSea were stolen due to a security exploit.
As per a report by Decrypt, the largest NFT marketplace has already refunded the lost NFTs from its inactive listing exploit.
Related Article: OpenSea Vulnerability Exploited With Profits Close to 150 ETH or Over $2.4K USD
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Written by Teejay Boris
