• M

    Max E.

    OpenSea Has Reimbursed The Losses Of Its Customers

    Opensea returend funds

    The popular NFT marketplace OpenSea reimbursed users for a total of 750 ETH (about $1.9 million), writes Bloomberg. The project was found to have a malfunction that allowed buying expensive tokens at reduced prices.

    Prior to the advent of the urgent listing function (tokens are automatically removed from the site after a certain time), users had to delist their NFTs themselves. This required an additional payment of a commission, which in some cases was extremely high.

    However, when transferring a token to a third-party wallet and back, it ceased to be displayed in the marketplace interface. At the same time, the delisting was not confirmed on the blockchain, so NFTs could still be bought through the API. This made it possible to purchase tokens at the old prices, which were often significantly lower than the current ones.

    To fix the issue, OpenSea launched a listing and delisting feature and reduced the default NFT listing duration from six months to one. Also, all users were notified of the need to delist: last Wednesday, the company sent out an email to account holders advising them to cancel inactive NFT listings for sale. However, according to users, the recommendation had the opposite effect. The delisting resulted in the re-creation of the original order. 

    Since the cancellation of an inactive listing is an on-chain transaction, this means that it is added to the very end of the blockchain. Fraudsters watching new transactions may see the cancellation of the NFT sale and immediately start looking for old ads from its owner. What's more, they can pay an additional pre-cancellation fee by making an NFT purchase before the transaction is confirmed.

    As a result, some of the token holders stated that they had lost both NFT and money. For example, one of the identified attackers, nicknamed "jpegdegenlove", allegedly paid $133,000 for seven NFTs and subsequently sold them on the platform for seven times the price, for $934,000.

    After criticism on social media, OpenSea announced the addition of new features aimed at preventing similar incidents in the future.

    First, the platform is launching a new list manager, adding a Lists tab to user profiles. The new feature will help users view their active and inactive lists.

    Also, OpenSea has added features to notify users when they move NFT from their wallet or list a token for sale far below its floor price.

    The company emphasized that they actively interact with the victims and compensate for their losses.

    The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research. This text is not a guide to action. The author's opinion may not coincide with the opinion of CoinJoy.

    SHARE