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OpenSea changes policy to prevent NFT theft

Hacking cases have increased in the crypto segment in the last few months. Due to this, the firms associated with this segment as well as the investors have suffered huge losses. OpenSea, a non-fungible token (NFT) marketplace, has changed its policy to protect users from theft of digital collectibles. OpenSea has decided to take the help of police officers in all cases of theft.

Along with this, the firm has made it easy to resell and purchase stolen items after recovery. These changes have been made based on the feedback received from the NFT community. “We are making it easier for users who report a stolen item to resell or purchase an item upon recovery,” OpenSea said in a post on Twitter. The firm has acknowledged that users’ confidence in the firm has been weakened due to legal difficulties for their next buyers or holders in some cases of stolen NFTs.

OpenSea explained, “It is illegal under US law to sell or transfer an item that is known to be stolen. By allowing the sale of stolen items on our platform, we do not want to encourage theft. In some cases without knowledge Fines have been imposed on those who buy such items. This is a big problem for us. We are looking at user feedback to deal with it.”

Using blockchain technology in NFTs, tokens of unique items are authenticated which are linked to reproducible digital assets. These can include art, music, in-game items, and videos. These can be traded online but cannot be duplicated. With the growth of business in this segment, there has also been a rise in scam cases. In the US, some major fraud cases related to this segment have been uncovered. Some of the accused have also been arrested. These cases have raised apprehensions about trading in this segment. Regulators have also emphasized on increasing scrutiny of this segment due to increasing hacking cases.

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