OpenSea, the leading NFT marketplace, has faced several lawsuits following hacks on its platform. Jimmy McKimmy, an NFT owner from Texas, sued OpenSea for the recovery of more than a $1 million loss of his stolen NFT, Bored Ape #3475.
Hacks have led to more uncertainty in the NFT community, which could be the source of slowing demand in recent months.
McKimmy is not alone with his hefty loss. OpenSea recently issued around $1.8 million in refunds to users whose NFTs were stolen. Still, OpenSea's policy on such reimbursements is unclear at the moment. The platform requires users to connect their accounts to a wallet, which means others can see unlisted NFTs and make potential offers for those assets. In McKimmy's case, the hacker made an offer, hacked the code, accepted the offer for McKimmy and then resold the NFT.
Earlier this month, OpenSea's Discord account was hacked and posted a phishing link disguised as a "stealth NFT mint" and was used to steal the NFT Mutant Ape Yacht Club #8662 from a user. Similar incidents kindled comments on Twitter and caused a slowdown of NFT trades overall.