Whale Sues Coinbase for Refusing to Return $55 Million in Stolen Funds

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On May 6, an anonymous crypto whale filed a lawsuit against Coinbase in federal court in San Francisco, accusing the trading platform of refusing to return funds stolen in 2024. The victim, from Puerto Rico, reportedly lost over $55 million in DAI stablecoins during a phishing attack in August 2024. At that time, hackers gained control of the wallet through a fake DeFi Saver login page, quickly transferring the funds and laundering them through mixing services. The victim subsequently hired several on-chain investigation firms to track the funds, ultimately discovering that some of the stolen assets had flowed into a Coinbase account. Although the trading platform froze the relevant funds in December 2024, it has refused to return them a year and a half later, claiming that only a court order could release them. The lawsuit emphasizes that while Coinbase’s initial freezing of the funds was reasonable, its refusal to return them after the victim provided sworn proof of ownership is unreasonable. Coinbase has not publicly responded to this matter.

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