OpenSea, the world’s largest NFT marketplace, faces a lawsuit over stolen NFT policies. Jesse Halfon is leading the lawsuit against the company. In particular, he is an attorney/strategic advisor to NFTs, DAOs, and handles intellectual property law for creators and platforms. It’s not a class action lawsuit at this time, but the wider community’s support suggests it’s a possibility.
Lawsuit Against OpenSea For Stolen NFT Policy
Jesse Halfon’s lawsuit against OpenSea focuses on the company’s NFT policy regarding its treatment of “stolen” NFTs. This is not the first time policy has come under scrutiny.
This policy has been the subject of complaints and concerns from numerous NFT communities. It will also be interesting to see if there are any changes from OpenSea as this official lawsuit is ongoing.
In a tweet, @JesseHalfon announced a lawsuit and accompanying documents filed in Michigan.He said, “I filed a lawsuit against @high seas Today, based on their “broken” stolen NFT policy. I believe this template could be the driving force to force some long awaited changes to the system. ”
How does a lawsuit against OpenSea work?
Like many others in the NFT community, Jesse is fed up and wants a change of policy from OpenSea. To do this, he filed a lawsuit through small claims court and took action. Additionally, Jesse hopes this will serve as a wake-up call to the hugely popular NFT platform.
Under the terms of OpenSea’s contract, any lawsuits against stolen NFT policies have been arbitrated. Most online user agreements stipulate that users must resolve claims in this manner.
NFT community members want to join OpenSea lawsuit
Many people want to join a lawsuit, but it’s also difficult to file a class action lawsuit. Importantly, OpenSea’s terms also prohibit class action lawsuits. The terms state that “all claims and disputes within the scope of the Arbitration Agreement shall be arbitrated on an individual basis and not on a representative or collective class basis.”
However, in a subsequent tweet, Jesse said this would make a class action lawsuit less likely, but not impossible. I hinted that I had an idea.
What is the OpenSea stolen NFT policy?
OpenSea’s official policy prohibits the sale of stolen NFTs and does not allow these items on its platform. They said, “We take allegations of theft seriously, and if we are notified of a potentially stolen item, we will notify you via OpenSea of Disable the ability to buy, sell, or transfer items.”
Of course, protecting people’s assets is imperative, and at the heart of it is what OpenSea is trying to do. However, many in the NFT community are concerned about how the policy will work.
NFT policy issues
Some people found their NFTs locked and unable to sell. This is usually because the previous owner of those NFTs contacted the market and identified them as stolen.
Unfortunately for people who currently own NFTs and were not involved in theft, they are currently unable to sell NFTs. Moreover, the overall value of these stuck NFTs is in the tens of millions of dollars.