The mechanism used by OpenSea to flag items as ‘reported for suspicious activity’ is frequently mishandled.
OpenSea has been taking the step of banning NFTs due to suspected fraudulent activity—even in cases where the suspicions are unfounded. Reports are coming in about how this flawed policy is harming innocent NFT traders, who are being penalized for events that weren't properly verified, effectively barring them from trading their digital assets.
The leading platform for NFTs tends to freeze digital collectibles and shut down various accounts without thorough investigation. Users of OpenSea have reported that when they try to raise issues with the platform, the response from customer support is typically unhelpful, often amounting to a curt 'sorry, better luck next time.'
One OpenSea user, who goes by the handle zamunda.eth, invested his savings in a CrypToadz NFT only to find it flagged by a previous owner who had lost ownership of it. An unnamed collector borrowed Ethereum from the NFTfi loan marketplace to make NFT purchases, but after defaulting on the loan, the NFTs were returned to the lender. The lender then resold the CrypToad back to zamunda.eth, but because the original borrower reported it, the NFT is now marked as suspicious and frozen. This anonymous collector has allegedly flagged numerous NFTs they once owned. collateral for a loan Now, aside from worrying about the possibility of purchasing an NFT that might have been stolen at some point in its past, we also have to deal with the anxiety that a vindictive former owner could report it out of spite.
It seems I’ve become yet another casualty of their misguided ‘reported for suspicious activity’ system. I bought an NFT for 2 ETH on OpenSea, and just TWO DAYS LATER, it was flagged for suspicious activity, making it impossible to trade.
Not long ago, a user under the name Beetle created a compilation of 130 BAYC NFTs flagged as suspicious. While some might genuinely be stolen, others may have been locked for arbitrary reasons.
There has to be a stopping point to the negligence surrounding 'Reported for suspicious activity' listings for BAYC and MAYC—these need to be available for buying and selling. Almost every Ape is facing hacks; soon it’ll be impossible to list anything from this collection.
According to uk A member of the NFT community recently tweeted a grim forecast suggesting that users may unite to lodge collective complaints against OpenSea and consider migrating to better-organized NFT platforms. uz Currently, only 40 NFTs are available on OpenSea; the rest are subject to flags for dubious activity.
It appears NFTs are becoming irrelevant, and a major shift is imminent.
1) Now con artists have begun accepting offers on their own NFTs and then flagging those assets as suspicious by falsely claiming theft. They aim to buy them back at a discount, knowing that the items can't be sold anymore on OpenSea.
Search
Chainalysis has released a preliminary report addressing issues of Web3 theft, money laundering, and other related concerns.
Hot Projects
July 26, 2022
Share this article linkedin Blum marks its one-year anniversary by winning the 'Best GameFi App' and 'Best Trading App' accolades at the Blockchain Forum 2025.