The crypto industry’s largest NFT Marketplace platform OpenSea has come up with several solutions to the problem of freezing stolen NFTs.
OpenSea has long been criticized for many outstanding problems that remain unresolved, such as stealing art copyrights to release NFTs or NFT hacks.
When an account’s NFT is stolen, OpenSea freezes the user’s account for purchasing the stolen NFT, even though the buyer may not know that the NFT has been hacked. Buyers will both lose the money spent to buy NFT and have their accounts unreasonably suspended.
In a series of Twitter posts on the morning of August 11, the platform’s representatives announced the latest proposals to solve the above problem.
1/ Can we address the 🐘 in the room? We want to provide you more clarity and transparency around our stolen items policy ↯
— OpenSea (@opensea) August 10, 2022
US law prohibits the sale and transaction of stolen assets, so the exchange will be forced to seal all NFTs reported as stolen by hackers. To prevent users from being unjustly frozen, OpenSea recommends that users report the theft to the police so that the exchange can verify the information and recover it.
5/ In some cases, the purchaser who unknowingly bought a stolen item (at no fault of their own) was inadvertently penalized. This is one of the most difficult issues we face. Please believe we take it seriously & we’ve been actively listening to your feedback on how to tackle it
— OpenSea (@opensea) August 10, 2022
However, the reaction of most of the comments under the post was disapproving. The most obvious reason is that not all users of the exchange are US citizens, and can apply for a certificate of property theft easily within 7 days. Not to mention having to explain to the police what an NFT is and whether or not the law recognizes the NFT as property.
Some users have suggested that the easiest and most logical thing that OpenSea can do is to block transactions within 24 hours of transferred assets without fees, because they could fall into the category of suspected hacking, thereby giving the victim time to report.
On August 10, OpenSea also posted a new update that addresses the issue of copying someone else’s NFT and redistribution, aka copymint.
1/ A few months ago, we announced some big changes to our verification/badging process and an automated system to help identify, remove, and prevent copymints on OpenSea.
We’ve made some great progress, & wanted to share an update 👇https://t.co/f7F5i0mbrL
— OpenSea (@opensea) August 9, 2022
The exchange also claims to be able to resolve up to 90% of verification requests in just 1 hour, as well as detect and remove NFTs that copy others within 2 hours of reporting.
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