OpenSea has been grated another boon in what comes as the latest update of the case filed by two of its users.
After a judge permitted the firm to demand arbitration, two OpenSea users have withdrawn their proposed class-action lawsuit against the NFT Marketplace.
OpenSea Users Drop Lawsuit
According to reports, Itai Bronshtein and Anthony Shnayderman voluntarily filed a request to withdraw their securities lawsuit against Ozone Networks (doing business as OpenSea) in a federal court in Florida on November 7.
Judge Cecilia Altonaga previously permitted OpenSea to submit a motion last month to compel these two parties to arbitrate their disputes.
These two users purportedly accepted OpenSea’s terms of use in an October document, which said that an arbitrator would settle all disputes, which include whether or not they ought to get resolved by arbitration at all. OpenSea forced these users to participate in arbitration.
As per the October document, the NFT market also declared that it “intends to act quickly to compel the plaintiffs to arbitrate their claims in the agreed-upon forum” and that it would appeal any court decision to suspend the case.
The proposed lawsuit was filed in September by Shnayderman and Bronshtein, who claimed that the NFTs they purchased on OpenSea were worthless “due to their illegal nature” and that they were unregistered securities contracts in the US.
OpenSea’s Previous Legal Battles
The lawsuit filed by the two users came as one of the many legal battles that the NFT marketplace was facing. In the past, OpenSe had announced that the US Securities and Exchange Commission was pursuing legal action against it.
The SEC ha d sent OpenSea a Wells notice threatening to sue it because they believe NFTs on the platform were traded as securities, as revealed by the Co-founder and CEO Devin Finzer.
The SEC’s lawsuits against Coinbase, Binance, and Kraken were also on very similar grounds, however, it faced huge backlash from many in the crypto community.
Big NFT Market Traders Show Trust in OpenSea
The news of the lawsuit being dropped also comes in the backdrop of famous market participants showing support for OpenSea.
Johnweth, a well-known NFT trader, previously provided details about the OpenSea V2 beta. He listed the aspects of the ecosystem that he finds appealing in order to explain his optimism for OpenSea’s future.
He claims that the ecosystem will introduce a loyalty program, give point upgrades to the highest bidders, and offer some kind of incentive to users who provide liquidity in the top NFTs.