Home » Nevada Judge Tosses Lawsuit Filed Against OpenSea, Yuga Labs – ARTnews.com

Nevada Judge Tosses Lawsuit Filed Against OpenSea, Yuga Labs – ARTnews.com

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Nevada Judge Miranda M. Du said: lawsuit submitted To Yuga Labs, the parent company of Bored Ape Yacht Club, and leading NFT trading platforms high seas and LooksRare — claimed that both parties failed to adequately prevent and respond to the NFT theft.

Robert Armijo, who filed the lawsuit, was the owner of three BAYCs. NFTs Purchased in November 2021 and January 2022. Armijo said on February 1, 2022, he attempted to trade one of his NFTs in his message on his site’s Discord. Someone claiming he was interested in trading sent him a link to start trading, and Armijo clicked on it. This link was a phishing link that gave the hacker access to his Ether wallet on his Armijo. The hacker then stole his Armijo’s NFT and resold it on OpenSea and his LooksRare.

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When the lawsuit was filed last April, Armijo’s attorneys said OpenSea and LooksRare “failed to implement common sense and reasonable security measures to prevent foreseeable fraud and sale of stolen assets.” claimed. Complaint read. The lawsuit defends Yuga Labs for failing to “monitor its own proprietary ape community by denying admission to individuals accessing it based on his stolen BAYC NFT.” I mentioned it.

The judge dismissed all defendants’ cases using their own reasons for each defendant.

Yuga Labs said the lawsuit was moot as far as they were concerned, because the company is incorporated in Delaware and has no employees in Nevada, so their company is not under Nevada jurisdiction. was insisting. Armijo’s attorneys tried to argue that Yuga Labs’ frequent operations in Nevada allowed it to be tried in the state, but Judge Du disagreed.

“Just because a product purchaser or a member of a private club lives in Nevada is not enough to put Yuga Labs in your Nevada home,” her decision read.

Therefore, Judge Du was unable to rule on Armijo’s complaint filed against Yuga Labs.

Judge Du also upheld OpenSea’s motion to dismiss. Armijo’s attorneys alleged that OpenSea was at fault because it lacked a process to verify ownership and a system to quickly respond to reported thefts. Armijo contacted OpenSea shortly after he realized his NFT had been stolen, but received no response before the item went on sale on the platform. OpenSea once had an ownership verification process, but that feature he removed in March 2021.

Du states that a plaintiff can only seek relief for damages resulting from negligence if: Physical bodily or property harm; purely economic losses are not covered by negligence claims.

It is unclear why LooksRare was not mentioned in the judge’s order. According to the docket for the case, LooksRare has not been mentioned as a plaintiff since March 2022.

Lawyers for OpenSea, Yuga Labs and Armijo did not respond. art news Request for comments.

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