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. He is notably a lawyer/strategic advisor for NFTs, DAOs and handles intellectual property law for creators and platforms. In response to the announcement, others asked to join the lawsuit against OpenSea. While not a class action right now, support from the wider community suggests it could become a possibility.
The lawsuit against OpenSea for its stolen NFT font
Jesse Halfon’s lawsuit against OpenSea focuses on its NFT policy regarding how it deals with “stolen” NFTs. This is not the first time the policy has come under scrutiny.
The policy has been the subject of frustration and concern from many in the NFT community. With this official lawsuit underway, it will also be interesting to see if there is a change from OpenSea.
In a tweet, @JesseHalfon announced the lawsuit, along with the accompanying document, filed in the state of Michigan. He said: “Led a lawsuit against @opensea today based on their “broken” stolen NFT policy. I believe this pattern could be the impetus that forces a long overdue change in the system. »
How does the lawsuit against OpenSea work?
Like many other members of the NFT community, Jesse is fed up and wants a policy change from OpenSea. To do this, he filed a complaint via small claims court to act. Additionally, Jesse hopes this will be a wake-up call for the hugely popular NFT platform.
Due to OpenSea’s terms and conditions, the lawsuit against their stolen NFT policy is for arbitration. Most online user agreements state that people should resolve complaints in this manner.
NFT community members hope to join OpenSea trial
Although many people have asked to join the lawsuit, filing a class action lawsuit is also tricky. Significantly, the OpenSea Terms also prohibit class action lawsuits. The terms state that “All claims and disputes under the arbitration agreement shall be arbitrated on an individual basis and not on a representative or class basis.”
However, in later tweets, Jesse said that while that makes the possibility of a class action lawsuit unlikely, it’s not impossible. He also hinted that he had some ideas on how to circumvent the terms of service for a class action lawsuit against OpenSea.
What is the OpenSea Stolen NFT Policy?
Official OpenSea policy prohibits the sale of stolen NFTs and does not allow such items on the platform. They state: “We take allegations of theft seriously, and when notified of potentially stolen items, we disable the ability to buy, sell or transfer the items through OpenSea to ensure that we comply with legal requirements. protecting users.”
Of course, protecting people’s assets is essential, and at the heart of that is what OpenSea is trying to do. But many in the NFT community are concerned about how the policy will work.
Issues with NFT Policy
Some people have found their NFTs locked and can no longer sell them. This is usually because the previous owners of these NFTs contacted the market and identified them as stolen.
Unfortunately for people who now own the NFT and did not participate in the theft, they are currently unable to sell their NFT. Moreover, the aggregate value of these NFTs stuck in limbo is in the tens of millions of dollars.
The OpenSea lawsuit seeks to resolve these problems and make all parties happy. Hopefully, now that the conversation is happening on social media, OpenSea will consider how they can push the policy forward.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, do your own research before making any type of investment.