OpenSea Updates Stolen NFT Policy After Much Pressure from Platform Users
Starting from August 11th, OpenSea will re-enable buying and selling of flagged NFTs if they don't receive a police report in 7 days. However, the update does not seem to apply retroactively.
OpenSea made changes to its stolen NFT policy amid widespread anger
Earlier on, if someone reported your NFT as a stolen item on OpenSea, it would take ages before you could trade or transfer that NFT using the platform. This has proven to be troublesome on many occasions, especially if the NFT was wrongly reported as a stolen asset.
With more and more users venting their frustrations on the seemingly unfair policy, OpenSea finally addressed the "elephant in the room" in a lengthy Twitter thread last week. The giant NFT marketplace started by saying the goal of the stolen item policy has always been about keeping the community safe. But in some cases, its side effects have caused users to lose trust in them.
Thus moving forward, OpenSea will re-enable buying and selling for the reported item if they do not receive a police report within 7 days. What's more, they are making it easier for users who reported the stolen item to re-enable buying and selling when they recover the item OR withdraw their stolen item reports if they want to.
In the long term, OpenSea will look into more effective ways to tackle the problem. For instance, block any suspicious URLs earlier. It is also working closely with ecosystem partners to help prevent NFT theft and provide better educational resources on safety tips in Web3. With that, the company even cited MetaMask's recent update in adding a confirmation window for users as a good way to prevent NFT scams.
However, OpenSea has not commented on whether the new update applies to flagged NFTs in the past. Sadly, the answer seems to be no. Shortly after the announcement, Twitter user @TheoBeams shared a screenshot showing what appears to be his conversation with an OpenSea mod. Within the chat, the mod said: "We're not retroactively applying our updated approach to stolen items."