Coinbase loses a lawsuit in Brazil this time, showing that the “non-custodial” label is not a magic liability shield either—consumer protection laws provide backup.

Crypto news: A court in the Brazilian state of São Paulo ruled that Coinbase must refund a user nearly $100,000. The user said that funds deposited into a Coinbase wallet disappeared in unauthorized transactions. Coinbase argued that the wallet’s private keys were controlled by the user, but it failed to prove that the transactions were initiated by the wallet holder and failed to prove that there were security measures in place to prevent this outcome. The court made the ruling based on relevant provisions of the Consumer Protection Law, requiring Coinbase to refund the full amount plus statutory interest.