NFT Theft: OpenSea Updates Policy to Tackle NFT Fraud and Theft
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- OpenSea is the world’s top non-fungible tokens (NFT) and digital collectibles marketplace.
- OpenSea customers must file a police report within seven days of losing their NFTs.
- OpenSea further stated that it collaborates with other Web3 platforms to reduce the effect of NFT frauds.
The policy of the OpenSea non-fungible tokens (NFTs) and digital collectibles marketplace has recently been changed. The idea is to counteract the selling of stolen NFTs on the platform. According to the recently updated rules, OpenSea customers must file a police report within seven days of losing their NFTs.
Zeneca, an anonymous NFT collector, and trader, also had his Twitter account hijacked this week, though the amount of harm to users is unknown.
Policy Update for OpenSea NFT
OpenSea is the world’s top non-fungible tokens (NFT) and digital collectibles marketplace. In an effort to combat scams and NFT theft on its platform, OpenSea has added a new section to its user policy.
The issue of NFT theft and fraud has recently become more prevalent. Therefore, many OpenSea users have fallen victim to these nefarious methods. Consequently, they are losing millions of dollars to criminal actors.
On August 10, 2022, the team of OpenSea reaffirmed in a Twitter thread about their policy. OpenSea policy is intended to work in the best interests of its community. The regulations have harmed some users, eroding their faith in the site.
“Our policy is intended to keep our community safe, but we recognize that its unintended consequences have harmed your faith in our platform in some circumstances.” We have failed to articulate the reasoning for our approach in a proactive and open manner. We’re all in this together: while we try to make our users safer, it’s our responsibility to keep you informed,” the company tweeted.
Police Report Is Required
According to OpenSea, their approach is designed to comply with US laws that ban the selling of stolen goods. The platform has now broadened the scope of police complaints in its ecosystem as part of the new OpenSea fraud eradication efforts.
While previously solely employed in escalated disputes on OpenSea, individuals whose NFTs are stolen on the platform must now seek and file a police complaint within seven days of the event.
“For any future reports, if we do not get a police complaint within seven days, we will reinstate buying and selling for the reported item.” This modification will aid in the prevention of bogus reports. We believe this is a fantastic starting step, and we appreciate the support of the community,” it said.
Furthermore, the team has stated that it is working on a new feature that would allow users who reported an item stolen to re-enable buying and selling without the need for a letter from a notary public.
The company has also stated that it is collaborating with other blockchain ecosystem actors to disincentivize and prevent theft and other criminal behaviors on the network.
Head of Product of OpenSea Accused of Insider Trading
Besides, the former Head of Product of OpenSea, was accused in June 2022 for insider trading, wire fraud, and other criminal acts on OpenSea. While NFT trade volumes have plummeted this year, more and more companies have joined the digital collectibles’ movement.
Samsung recently announced that owners of its premium devices would now be rewarded with NFTs.
OpenSea has the Ability to Restrict NFTs Trading
It is important to note that while OpenSea may restrict the ability to purchase, sell, or transfer specific NFTs on its marketplace, this does not preclude users from trading elsewhere. Owned NFTs stay in users’ wallets and can utilize markets that do not have the same policies or have not marked those assets as stolen in the same way.
OpenSea further stated that it is collaborating with other Web3 platforms to reduce the effect of NFT frauds and better educate consumers. It referred to a recent upgrade to the popular Ethereum wallet MetaMask, which makes users more aware that they are giving away broad access privileges with certain transactions—broad access that is routinely sought to carry out such attacks.
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