Legal action begins against developer who solicited investments to build an OpenSea competitor, then used it to fund his NFT trading

Attorney Kevin Homiak tweeted that his firm would be representing several individuals who contributed money to a developer, Tyler Gaye, who promised to be working on an NFT platform called 0peNFT. After pulling in donations totaling 227 ETH (then around $400,000), the project was plagued with delays. Despite promises that the team was hard at work, people observing the public Github noticed it showed almost no commits to the project code.

Meanwhile, Gaye used the project Twitter account to promote his own NFT collection. He also took the donated funds and used them to buy NFTs. When pressed on this in the project's Telegram chat, he wrote, "Im buying NFTs because its my ETH and thats what I wanted to do." After crypto scam investigator zachxbt wrote about Gaye's scams, Gaye threatened to "put him in the ground if we ever meet in person".

Gaye has spent almost 400 ETH on NFTs since beginning to collect donations for his project — equivalent to over $1 million. He has also sold NFTs for a total of around 315 ETH (roughly breaking even with the amount he spent on NFTs, if looking at the ETH prices at time of trade), and amassed a substantial number of NFTs he still holds.