The market requires OpenSea users to waive securities litigation after arbitration

ChainCatcher news, according to Cointelegraph, two OpenSea users have accused the NFT trading platform OpenSea of selling unregistered securities, but they abandoned the proposed class action after a judge allowed the company to seek arbitration.

On November 7, Anthony Shnayderman and Itai Bronshtein filed a voluntary motion to withdraw their securities lawsuit against Ozone Networks (operating under the name OpenSea) in federal court in Florida. Previously, Judge Cecilia Altonaga had permitted OpenSea to file a motion to compel the two to arbitrate in an order last month.

OpenSea insists on compelling the two users to arbitrate and claimed in an October filing that they agreed to its terms of use, which state that all claims will be resolved by an arbitrator— including whether the claims should be arbitrated in the first place. In the October filing, the NFT marketplace added that it "intends to take swift action to compel the plaintiffs to arbitrate their claims in the agreed forum" and will appeal any dismissal by the court, thereby staying the case.