Leading non-fungible token (NFT) marketplace OpenSea reportedly blacklisted some major NFT collections valued at over $27 million. However, many users have criticized the platform for not carrying out due diligence when marking an item as stolen.
The Cost of OpenSea’s NFT Blacklisting
According to this Dune Analytics dashboard created by on-chain sleuth beetle, several token IDs and transactions of top NFT collections like Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), CloneX, Azuki, Moonbirds, and Bored Ape Kennel Clun (BAKC) were marked stolen or suspicious by OpenSea.
Based on the data provided, the total number of NFTs blacklisted by the marketplace came to 24,000 ETH (worth $27 million). The figure is according to the floor prices of each aforementioned NFT collection.
OpenSea blacklists an asset on its website and prevents it from being traded after a person reports the NFT as stolen. However, there have been several complaints stating that the platform arbitrarily marked NFTs without proper investigation, meaning that anybody could easily report their NFT as stolen.
One of the issues raised is that OpenSea flags an item as suspicious or stolen long after the supposed theft happened, which is unfair to the buyer.
Earlier in July, one Twitter user demanded an explanation from OpenSea after the marketplace marked their asset as suspicious 88 days after purchase. Several other buyers were in the same situation, stating that they had made attempts to get their items unflagged.
In addition, complainants have asked the marketplace giant to be transparent in the process used to mark an NFT as stolen.
While other NFT platforms like x2y2 follow OpenSea’s blacklisting of an NFT, the same cannot be said for LooksRare. Items tagged by OpenSea as stolen can often be sold on LooksRare, as has been the case on several occasions.
Many Security Concerns
OpenSea has also suffered 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 you were impacted. We are working with Customer.io in their ongoing investigation, and we have reported this incident to law enforcement. Please stay vigilant about your email practices, and be alert for any attempt to impersonate OpenSea via email.”
Earlier in May, the company’s Discord channel was compromised, enabling hackers to promote a fraudulent NFT mint to unsuspecting victims.