A court in the state of São Paulo, Brazil, ruled that Coinbase must refund a Coinbase Wallet user 507,000 Brazilian reais (about $99,000) plus statutory interest. The user said their assets were transferred out without authorization in a non-custodial wallet. Coinbase argued that the company does not hold the private keys and cannot control the transactions, but the court found that it failed to prove the transactions were initiated by the user and did not sufficiently explain the fund flows and security measures, and therefore rejected Coinbase’s exemption defense. (Bitcoin com News)

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GateUser-7df43e29
· 2h ago
The user says the funds were transferred out without authorization, but the court also didn’t manage to find out exactly who made the transfer—so the burden of proof allocation seems a bit odd.
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GateUser-715706bb
· 2h ago
This round of court rulings is interesting—where exactly is the boundary of liability for non-custodial wallets?
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ChillBlock
· 2h ago
Is $990,000 a lot or a little? It’s not too much and not too little, but the significance of the case is very big—going forward, similar lawsuits may all refer to this.
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TheFeelingOfEthInTheSeaBreeze
· 2h ago
Coinbase is awkward now—saying the court doesn’t recognize that it has no private keys. Will wallet service providers have to rewrite user agreements going forward?
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