OpenSea Bug has Destroyed $100,000 in NFTs

A system bug in OpenSea resulted in the burning of 42 NFTs in around 30 transactions, worth nearly $100,000 in value.

According to reports from sources, a system bug in the NFT marketplace on OpenSea caused the burning of NFTs owned by multiple users, having a value of around 28.44 Ether, which is about $100,000 in value.

Bug’s Origin

The incident was first reported by Nick Johnson, working as a lead developer of Ethereum Name Service, who noticed that his NFT linked to an Ethereum Name Service called rilxxlir.eth was missing. Just to explain, the Ethereum Name Service gives users the ability to store text and mark it as an NFT on the Ethereum Blockchain.

Nick was sending his NFT from an Ethereum Naming Service into a private account, in which he noticed that he had sent the NFT to a burned account. According to Nick, his initial encounter with OpenSea revealed that the bug was mentioned on the transfer page of the platform and that almost all ERC721 transfers into ENS names were shaken up by it.

Nick had managed to track out nearly 30 transactions based on 21 different accounts, in which the NFTs were lost because of the system bug. Nick found out that around 42 NFTs were gone. Nick also stated that the ENS token has literally to no value, but it has known to be the first-ever ENS name registered.

OpenSea commented on the matter, stating that they are getting into contact with many of the users who were victims of the bug, which sent the NFT to an ENS name to an encoded version instead of a normal address and that this bug was fixed. OpenSea refused to make any other comments regarding the matter.

OpenSea has been actively participating in funding rounds. The team at OpenSea, consisting of just 37 people, was basically handling 98% of the total NFT volume present on the platform. To boost its hiring procedure, OpenSea wanted to give out 1 Ethereum in return for successful referrals. Nate Chastain from OpenSea said that some guerrilla recruiting was required because of the need for employees.