The owner of a 'Bored Ape' non-fungible token (NFT) is suing platform OpenSea amid claims a bug in the system meant he unwittingly sold the in demand primate NFT for well-below its market value.
Timothy McKimmy filed a complaint against OpenSea in a Texas Court claiming his Bored Ape #3475 NFT was sold without his knowledge for around US$26 and then resold for $250,000, according to a report in Decrypt, citing the legal documents.
He is seeking the return of the NFT or more than US$1mln in damages, according to the report.
"Instead of shutting down its platform to address and rectify these security issues, (the) defendant continued to operate,” the complaint said, accusing OpenSea of negligence and breach of contract.
OpenSea "risked the security of its users’ NFTs and digital vaults to continue collecting 2.5% of every transaction uninterrupted", the complaint continued.
Mckimmy is allegedly the latest victim of an “inactive listings” bug that saw OpenSea issue US$1.8mln in refunds in January.
He said OpenSea knew about a bug that let hackers buy NFTs for prices well below the going rate.
The suit alleged McKimmy did not put his NFT up for sale before the transaction, saying it was stolen before being resold for 99ETH, or $250,000.
The courst action is the latest in a string of controversies to hit OpenSea in recent weeks. A senior executive was forced to resign after insider trading allegations and a phishing scandal that saw OpenSea customers lose their NFTs.