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OpenSea Sued for $1M

Timothy McKimmy, who lives in Texas, accidentally sold his Bored Ape NFT for 0.01 ETH, which is about $26, and now he wants to start a new project called OpenSea.

OpenSea Sued for $1M iBase Trading.
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Timothy McKimmy, who lives in Texas, accidentally sold his Bored Ape NFT for 0.01 ETH, which is about $26, and now he wants to start a new project called OpenSea. He says that OpenSea knew about a bug that let hackers buy NFTs.

It was very cheap to buy the NFTs. Federal court in Texas is hearing his case about Bored Ape #3475. He says he owns it. Bored Ape #3475 is one of a set of 10,000 primate NFTs that are very sought after. This group of NFTs is called the Bored Ape Yacht Club. His Bored Ape is not for sale, and he says the NFT was stolen. Even more, he said that the person who bought his NFT sold it right away for 99 ETH.

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Is rarer than Justin Bieber’s Bored Ape NFT. McKimmy says that the ape in question is in the top 14% for rarity. If he does not get the Bored Ape back and more than $1 million in damages, he wants to sue. Claims that OpenSea was aware of the bug. McKimmy is CEO for an iron ore company in Texas on LinkedIn. It was all over the news, but they did not stop trading to make more money.

The complaint said that instead of shutting down its platform to fix these security problems, the Defendant kept going. As a result, the defendant put the safety of its users’ NFTs and digital vaults at risk in order to keep collecting 2.5% of every transaction. The way he sees it. He has tried many times to solve the problem with OpenSea. In his story, he says the company told him that it was looking into the incident, but that it has not done anything else yet.

OpenSea Refunds $1.8M

In this case, McKimmy is not the only one. OpenSea has given about $1.8 million in refunds to people who were hacked in January. A lot of people don’t know how the company is handling refunds and figuring out refund amounts.

Talk in NFT forums says that OpenSea has reached out to other victims of the bug and offered them the floor price. McKimmy’s complaint says that this is what happened. OpenSea gave the victims a floor price, even though their NFTs were worth more. The offer was only valid if they signed a non-disclosure agreement.

There could be more lawsuits after the one filed on Friday. A law firm in the northeast wants to hear from other OpenSea customers who lost NFTs because of a bug. The law firm wants to file a class-action lawsuit. McKimmy says that one goal of the lawsuit is to make OpenSea do a better job of protecting itself.

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Jane De Leon is a news writer covering all things related to DeFi and NFTs. In the past, she has worked for a well-known Business Newspaper. She originally began investing in Bitcoin after hearing about it from her brother and hasn’t looked back since.