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August 13, 2022

OpenSea Modifies Stolen NFT Policy After User Complaints

Amid growth in NFT frauds, Web3 platforms are more compelled to detect and manage stolen funds. OpenSea, as the biggest NFT marketplace, has bore the brunt of this Web3 obligation, but its strategy of banning identified assets has garnered significant reaction, particularly for penalizing customers who were unaware they were purchasing stolen NFTs.

In response, OpenSea said on Wednesday through Twitter that it would modify how it handles suspected stolen NFT assets.

Previously, OpenSea prevented stolen assets from being purchased, sold, or transferred on its platform while it investigated each case, resulting in an indefinite hold on access to these NFTs and their corresponding value.

OpenSea said in a tweet that it intended to address the elephant in the room by requiring a police report within seven days of reporting an NFT as stolen. The marketplace says that it previously did this for escalated disputes, but it will now be needed for all reported stolen NFTs.

This action is meant to prevent bogus reports. In the absence of a timely police report, the hold on the goods will be released.

In addition, OpenSea claims it will ease the procedure for revoking a claim after a user recovers their or her stolen NFT, or if they choose to withdraw a complaint for any other reason.

Thursday, OpenSea emphasized that the necessity for a police report would only apply to newly-filed claims for stolen NFTs and not to current instances. If we implemented this retrospectively, we’d be asking them to take further steps months or weeks after they’ve (hopefully) put this matter behind them, the marketplace tweeted.

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OpenSea said that it cannot enable the selling of stolen NFTs since it is situated in the United States. However, as a consequence of the marketplace’s extensive blacklisting policy for reported assets, users who purchased NFTs unaware that they had been previously stolen are often unable to trade or transfer the asset.

OpenSea further mentioned that it is collaborating with other Web3 platforms to reduce the effects of such NFT frauds and educate consumers more effectively.

It referenced the recent upgrade to the popular Ethereum wallet MetaMask, which makes users more aware of the fact that they are giving away wide access privileges with certain transactions – broad access that is often sought to conduct such attacks.