September 30, 2022

OpenSea Sued For 1 Million Dollars By User Who Lost His Bored Ape NFT

2 min read

The OpenSea drama continues to stir up debate, and although lots of NFT owners took their massive losses, one of the victims had adequate and decided to take his case to court.

Timothy McKimmy, an NFT collector, sued the NFT marketplace OpenSea after losing his Bored Ape Yacht Club NFT due to what he referred to as a malicious attack on the platform.

How Thimothy McKimmy lost his Bored Ape Yacht Club NFT

As explained by Thimothy McKimmy – – who passes the nickname McKimmy on OpenSea – – in or around February 7, 2022, a hacker made use of a security vulnerability to illegally access his wallet and offer his Bored Ape Yacht Club NFT to a 3rd party for 0.01 WETH.

Taking into consideration the cost of Ether as of February 21, 2022, the asking price McKimmy’s NFT would be around $25.73, which is essentially the equivalent of distributing the token thinking about that the cost floor for the collection is 91.9 ETH, according to OpenSea’s information.

Because NFTs are distinct tokens, there is no way to identify a cost for all of the tokens in the very same method that the value of fungible tokens such as ETH or BTC is determined. The price floor exists to denote the minimum cost that sellers want to accept for their tokens at a given moment. To put it simply, the most affordable Bored Ape presently costs 91.9 ETH or $236K. Ouch!

In reality, today, McKimmy’s lost Ape is now for sale for 225 ETH, or $607K on OpenSea, and as McKimmy says in his claim, the present owner has actually declined to give him back his Ape.

McKimmy's Bored Ape Yatch CLub NFT is being sold for 225ETH in Opensea. Image: Opensea

McKimmy’s Bored Ape Yatch CLub NFT is being sold for 225ETH in Opensea. Image: Opensea OpenSea and the Phishing Attacks As Cryptopotato previously reported, a few days ago, a group of OpenSea users started reporting that they had actually lost their tokens after succumbing to a huge phishing attack.

The attacker made the most of a defining moment to release his scam. OpenSea was upgrading its clever agreement exactly to protect users from previous destructive practices. To carry out the upgrade, OpenSea sends official e-mails to its users, asking them to authorize the execution of the brand-new agreement.

Apparently, the assaulter took the opportunity to fool some users into signing a harmful code that offered him control of their wallets, which’s how McKimmy’s precious Ape changed hands for 20 bucks.

McKimmy argues that OpenSea “(failed) to execute policies and procedures to avoid, recognize, detect, react to, mitigate, consist of, and/or proper security violations,” and is demanding payment for “the valuation of the Bored Ape, and/or monetary damages over $1,000,000.”