Bored Ape owner alleges $1M in losses from OpenSea bug, files lawsuit

OpenSea is facing another setback after an NFT collector accidentally sold his Bored Ape NFT for a meager $26, or 0.01 ETH, despite its value being allegedly over $1 million.

The collector, a man named Timothy McKimmy from Texas, has now filed a lawsuit against the NFT marketplace, claiming that OpenSea was aware of the bug that led bad actors to buy the NFTs for well-below market prices.

“Instead of shutting down its platform to address and rectify these security issues, Defendant continued to operate. Defendant risked the security of its users’ NFTs and digital vaults to continue collecting 2.5% of every transaction uninterrupted,” the complaint filed in the Texas federal court read.

According to the complaint filed, McKimmy has maintained that he did not put the NFT up for sale and ergo, is the rightful owner of the BAYC #3475. He is seeking more than $1 million in damages or the legitimate return of the ‘stolen’ Bored Ape.

The NFT in question is one of the 10,000 uniquely-identified digital collectibles from the well-known NFT collection Bored Ape Yacht Club. According to McKimmy, the Bored Ape #3475 is supposedly in the top 14th percentile in terms of rarity score, rarer than the one bought by Justin Beiber for $1.3 million.

When taking up the issue to the OpenSea support team, the complaint noted that the company only maintained that it is “actively investigating” the issue but did not do anything more.

The buyer, who purchased the Bored Ape for $26, has now resold the NFT for 99 ETH, roughly $250,000 at current prices. At the time of writing, the last known buyer of Bored Ape $3475 has put the NFT up for sale at 225 ETH, worth $592,000.

McKimmy was likely the victim of a bug found in one of OpenSea’s smart contracts in January 2021. The bug allowed them to purchase popular NFTs, including Bored Ape Yacht Club, at prices significantly lower than the market rate.

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