Understanding Web3.0 Legal Issues - Opensea Case - Issue #7

GM Web3 Lovers! This week I will deep dive into Opensea BAYC case [Timoty Mickimmy (BAYC #3455) v Opensea]

This week was hard for everyone. I hope we will reach a more peaceful world soon. I saw numerous attempts from the crypto world which even increased my trust in the community. WAGMI!

Opensea hacks were still on the agenda of the crypto community. When you think of the responsibility of platforms and marketplaces, normally since all assets are physical, even there is a security breach, the main concern will be personal data. When it comes to the NFT marketplace, you can lose your BAYC Ape, CryptoPunk, or Doodle so we should think more about their responsibility. This case will be a hit in the gate!

Let me introduce you Mckimmy vs Opensea ! (You can click here to read Timoty Mckimmy's complaint)

According to the claim:

-Timoty Mckimmy is the rightful owner of BAYC #3475

-Opensea failed to provide security of the platform and got hacked.

-Timoty reached the new owner and Opensea, but still couldn't get his ape back. According to NFT forums, he believes Opensea offered other victims the floor price but this was not the case in this claim.

-Timoty believes it is around a million dollars when he compares it with Justin Bieber's ape in terms of rarity.

-Plaintiff claims that Open Sea failed to exercise reasonable care, to take the proper measures to protect the users, to use reasonable security systems and networks, to institute safety protocols, to address vulnerabilities they knew or should have known, to properly secure, to properly safeguard, to implement processes by which they could timely detect, address and/or remediate security breaches.

-Timoty asks for a jury trial.

I'm looking forward to seeing how things will end up in this case. (I will die to watch the jury trial with a bucket of popcorn. Alternative dispute mechanism: Trial by combat?!)

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Regulatory Considerations for Crypto Exchanges

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Jacq Radebaugh

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