Major non-fungible token (NFT) market OpenC has reportedly blacklisted some major NFT collections worth over $27 million. However, many users have criticized the platform for not doing due diligence when flagging an item as stolen.
OpenSea’s NFT Blacklisting Cost
According to this Dune Analytics dashboard created by on-chain sleuth Beetle, transactions of several token IDs and top NFT collections such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), CloneX, Azuki, Moonbirds and Bored Ape Kennels . The clone (BAKC) was flagged as stolen or suspicious by OpenSea.
Based on the data provided, the total number of NFTs blacklisted by the Marketplace was 24,000 ETH (worth $27 million). This figure is in line with the minimum prices for each of the above NFT collections.
OpenSea blacklists an asset on its website and blocks someone from trading it after reporting the theft to the NFT. However, there have been several complaints stating that the platform flagged NFTs arbitrarily without due diligence, meaning that anyone can easily report their NFTs as stolen.
One of the issues raised is that OpenSea marks an item as suspicious or stolen, long after the alleged theft occurs, which is unfair to the buyer.
Earlier in July, a Twitter user clarification sought Marketplace marked their assets as suspicious after 88 days of purchase from OpenSea. Several other buyers were in the same situation, stating that they had tried to get their goods not flagged,
Further, the complainants have asked the market giant to be transparent in the process used to flag NFTs as theft.
While other NFT platforms such as x2y2 follow OpenSea’s blacklisting of NFTs, the same cannot be said for LuxRay. Items tagged as stolen by OpenSea can often be sold on LuxRay, as has been the case on several occasions.
many security concerns
OpenSea has also faced some security breaches in recent times. As previously reported by cryptopotato In June, the platform warned users of a possible email phishing attempt following a data breach.
“If you have shared your email with OpenSea in the past, you should assume that you were affected. We are working with Customer.io in their ongoing investigation, and we have reported the incident to law enforcement.” Please be vigilant about your email practices, and be alert to any attempts to impersonate OpenSea via email.”
Earlier in May, the company’s Discord channel was compromised, enabling hackers to promote the fraudulent NFT Mint to unsuspecting victims.
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