As the cryptocurrency industry has grown, it has been inundated with scammers. The high prices achieved by some of these tokens have made immutable tokens (NFTs) an increasingly attractive target.
OpenSea has been the target of these thefts many times over. It forced its to adjust its stolen digital assets policy, which he detailed in a Twitter thread on August 11.
OpenSea’s existing policy
Currently the market’s policy penalizes any user who buys a stolen NFT. As soon as someone reports an NFT as stolen, they are instantly banned from OpenSea until the person reports it has been returned.
Unfortunately, this means that an innocent person can be unfairly punished for unknowingly purchasing a stolen NFT. The problem gets more complicated as malicious people start marking tokens that weren’t stolen in the first place as “suspicious.”
Solution: Notify the police
According to the new policy, the market requires the police report to be submitted within seven days of the incident and only then OpenSea is disabled for buying and selling the reported product.
If the marketplace does not receive the police report within seven days, it will reactivate the trading of the reported NFT. According to the company:
“This change will help prevent false reports. We think this is a good 1st step & we’re grateful for the community’s suggestions.”
Additionally, the updated rules make it easier for users who report theft to reactivate their trading or decide to withdraw the report after recovery. As OpenSea explains:
“For example, we’re finalizing details on a simplified process that doesn’t require a notary.”
It is worth noting that OpenSea is the platform where scammers are trying to use the ‘Squiggles’ NFT project to defraud investors. Market responded by removing the project from the list.
In early May, news came that the OpenSea Discord channel had been hacked. The marketplace’s support line said it was investigating the situation and the channel was hidden from users.
Elsewhere, in March Finbold reported that NFT trading volume on OpenSea fell as demand for NFTs plummeted, a 72% drop from its January 2022 high. That said, the decline was most likely the result of lower interest rates.