Three Bored Ape Yacht Club (BAYC) Non-Fungible Token (NFT) owners, namely Timmy McKimmy of Texas, Michael Valise of New York, and Robert Armijo of Nevada, are suing legacy NFT trading platform OpenSea for the loss of their NFTs on the exchange.
As reported by ARTNews, the duo of McKimmy and Valise similarly lost their NFTs through a known security vulnerability in OpenSea’s code, while Armijo’s loss was through a social engineering attack which, according to him, was made possible based on OpenSea’s negligence.
“Even though McKimmy didn’t have his NFT listed for sale, OpenSea requires you to connect a wallet, and so people can see what NFTs are in that wallet and can make offers on unlisted NFTs,” Ash Tadghighi, McKimmy’s lawyer, explained. “Exploiting a security vulnerability, the hacker made an offer, hacked the code, and accepted the offer on behalf of Mr. McKimmy. So he basically sold it to himself and within the hour sold it to another user.”
The angry Bored Ape owners are filing for negligence on the part of OpenSea and are demanding all relevant damages, including what they lost as a result of not having their Bored Apes with them when APECOIN was distributed to holders of the NFT.
Bored Ape Building an Enviable Ecosystem
The lawsuit filed by the Bored Ape owners is coming at a time when Yuga Labs, the startup behind the most prestigious NFT collection is rolling out a number of ecosystems value for owners of any of its collections, including the Bored Apes and CryptoPunks, which it just acquired among others.
As reported by Blockchain.News, Bored Ape is entering the movie scene in a collaborative move with Coinbase Global Inc. While the startup recently raised $450 million to fund its visions for the other side metaverse, the three Bored Ape owners may lose more in the long run if the lawsuit is not addressed in their favor speedily.
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Source: https://blockchain.news/news/three-bored-ape-owners-sue-opensea-over-security-loophole-of-stolen-nfts