OpenSea, the biggest NFT marketplace in the world, is being sued over its policy on NFTs that have been taken. The prosecution against the business is being led by Jesse Halfon. Notably, he handles IP Law for creators and platforms and serves as an attorney and strategic advisor for NFTs and DAOs. Others have wanted to join the case against OpenSea in response to the announcement. Although there isn’t currently a class action, the community’s backing signals that there might be one down the road.
The lawsuit against OpenSea for its stolen NFT policy
Jesse Halfon’s lawsuit against OpenSea centres on how the company handles “stolen” NFTs under its NFT policy. The policy has already been the subject of criticism.
Many members of the NFT community have expressed frustration and worry about the policy. It will be intriguing to observe if OpenSea changes while this formal case is still pending.
@JesseHalfon announced the case and the related papers as having been filed in the State of Michigan in a tweet. “Filed a lawsuit today against @opensea based on their ‘broken’ stolen NFT policy,” he declared. This template, in my opinion, may serve as the catalyst for the system’s long necessary overhaul.
How does the lawsuit against OpenSea work?
Jesse is tired with the current OpenSea policy and wants it changed, much as many other members of the NFT community. He has taken legal action by bringing a claim in small claims court to accomplish this. Jesse also believes that this will serve as a wake-up call for the enormously popular NFT platform.
Arbitration is used in the complaint against OpenSea’s allegedly stolen NFT policy because of their terms and conditions. The majority of internet user agreements stipulate that claims must be handled in this manner.
NFT community members hope to join the OpenSea lawsuit
Even though a lot of people have wanted to join the lawsuit, a class action might be challenging. Notably, the OpenSea conditions prohibit class action lawsuits as well. According to the conditions, “All claims and disputes within the scope of the arbitration agreement shall be arbitrated on an individual basis, without regard to any kind of class or representative proceeding.”
Although this does make the likelihood of a class action case doubtful, Jesse argued in later tweets that it is still feasible. Additionally, he made a suggestion that he has some ideas on how to circumvent the terms of service in order to bring a class action lawsuit against OpenSea.
What is the OpenSea stolen NFT policy?
The selling of stolen NFTs is forbidden per the official OpenSea policy, therefore these products are not permitted on the platform. “We take claims of theft seriously,” they claim, “and when we are informed of potentially stolen items, we disable the ability to buy, sell, or transfer the things via OpenSea to ensure we comply with legal requirements safeguarding users.”
Protecting people’s assets is obviously important, and at its core, that is what OpenSea is attempting to achieve. However, the operation of the policy worries a large portion of the NFT community.
Issues with the NFT policy
Some users have discovered that their NFTs are locked and are unable to sell them as a result. It frequently happens as a result of prior owners of certain NFTs contacting the market and reporting them as stolen.
Unfortunately, the individuals who now own the NFT and were not involved in the theft are unable to sell their NFT at this time. Additionally, these NFTs are worth tens of millions of dollars collectively and are still in limbo.
The OpenSea lawsuit seeks to resolve these problems and appease all parties. Hopefully, OpenSea will consider how to proceed with the policy now that the discussion is taking place on social media.