Following reports of numerous hacks, OpenSea the popular NFT marketplace is set to change the way it handles digital collectibles that are reported as stolen. This decision comes after its policy for blocking flagged assets received backlash, especially for penalizing users who didn’t know that they were buying stolen non-fungible tokens.
The platform was previously used to block stolen assets from being bought, sold, or transferred on the marketplace as it investigated the cases. This meant an indefinite hold on accessing such tokens and their respective worth. OpenSea tweeted that it wanted to address the elephant in the room. It will need a police report to be submitted within seven days of flagging an NFT as stolen. OpenSea has done this in the past, but the difference now is that it will be required for all non-fungible tokens that are stolen. This also means that if a police report isn’t submitted on time, the hold on the items will be lifted. By doing so, the platform wants to prevent false reports.
Moreover, OpenSea will simplify the process for rescinding a claim once a user recovers their stolen NFT, or they want to withdraw the report. The marketplace also clarified that the police requirement will only be applicable to newly-filed claims over stolen NFTs, and non-existing cases. OpenSea said that if it applied this retroactively, it would be asking weeks or months later for them to take an additional step when they have put this behind them.