OpenSea Refunded Users $1.8 Million Following an NFT Listing Error
OpenSea marketplace has refunded $1.8 million to users who lost money due to a feature on the platform that caused them to accidentally sell valuable NFTs considerably below market value.
According to data given Thursday by OpenSea, one of the largest platforms for non-fungible tokens and digital assets, it reimbursed a total of 750 Ether for 130 wallet addresses. The action follows criticism earlier this week that it failed to adequately fix a user interface issue that allowed savvy opportunists to buy more than $1 million worth of NFTs at a discount.
Sellers that want to remove their listings from NFT platforms must send messages through the blockchain, which necessitates the payment of transaction or "gas" fees. NFT users are likely to have numerous wallets, therefore shifting stuff to another wallet may be a strategy to avoid fees. Users who have transferred their previously listed NFTs to other wallets without canceling the prior listings were affected by the functionality. Attackers came in and took advantage of the opportunity to buy those NFTs for a low price at their previously published price, then sell them at significantly higher current market rates. Bored Ape Yacht Club, Cool Cats, Mutant Ape Yacht Club, and CyberKongz were among the collections affected.
“In consideration for any confusion, we would like to offer you a reimbursement,” Opensea team reported, they further added “OpenSea cannot cancel listings on behalf of users because it requires their signature, and apologized for not clearly explaining the process of canceling listings.”
According to data collected by Bloomberg News from OpenSea, user jpegdegenlove made at least 340 Ether in a matter of hours by exploiting an OpenSea issue and selling at least five NFTs, three of which were from the Bored Ape Yacht Club collection.
Read more: Here