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An attorney for NFTs and DAOs, Jesse Halfon has filed a lawsuit against NFT marketplace OpenSea over its stolen NFT policy.
Filed a lawsuit against @opensea today based on their ‘broken’ stolen NFT policy.
I believe this template could be the impetus which forces a long overdue change to the system. 🧑🏻⚖️📝🌊@punk9059 @NFTinitcom @CapetainTrippy @iamDCinvestor @0xZubic @SpeculatorArt pic.twitter.com/Mda6VL3nIT
The lawsuit focuses on how OpenSea deals with NFTs which are reported ‘stolen’. The policy has been the subject of frustration among users and has been scrutinized before.
The policy in question states that OpenSea does not allow sale of stolen NFTs on the platform. However, due to this policy, users find that their NFTs are locked and are now unable to sell them.
This usually happens because the previous owners contact OpenSea and report their NFT as stolen. Unfortunately, people who now own the NFT, despite having no part in the theft, are unable to sell their NFT.
Read Also: OpenSea Launches Security Feature to Hide Suspicious NFT Transfers
Jesse filed the lawsuit via the small claims court to take action. Many users have asked to join the lawsuit, making it a class action lawsuit.
However, OpenSea’s term states, “All claims and disputes within the scope of the arbitration agreement must be arbitrated on an individual basis and not on a representative or collective class basis,” effectively banning class action lawsuits.
However, Jesse stated that although this does make the possibility of a class action case unlikely, it is not impossible.
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