Crypto whale sues Coinbase for allegedly refusing to return stolen DAI
The Block
05-06 13:20
Ai Focus
The plaintiff fell victim to a phishing scam that drained his DAI holdings, with part of the funds later traced to a Coinbase user account.
Helpful
No.Help

Crypto exchange Coinbase is facing a lawsuit from an anonymous crypto whale who alleges the company improperly refused to return frozen funds tied to a 2024 crypto theft.

The plaintiff, identified only as "D.B.," filed the lawsuit on Monday against both Coinbase and "John Doe," the alleged thief. While the filing was partially redacted, the disclosed details closely mirror those of an August 2024 crypto theft, where a crypto whale lost roughly $55 million worth of DAI (DAI).

According to the complaint, D.B. fell victim to a phishing scam on Aug. 20, 2024, after logging into a fraudulent page that ultimately gave the thief access to his wallet. The attacker reportedly drained his DAI holdings using "Inferno Drainer," a platform designed to facilitate crypto theft. 

A portion of the stolen funds was later traced to a Coinbase retail user account, according to the filing, which cited blockchain security firm Zero Shadow. The amount of funds stored in the account was not revealed in the filing.

Coinbase froze the assets after D.B. notified the exchange, but declined to release them back to the plaintiff without a court order adjudicating ownership. 

"While Coinbase acted reasonably in freezing the stolen cryptocurrency, its refusal to return the frozen funds to Plaintiff became unreasonable when Plaintiff provided sworn proof that he is the rightful owner and Coinbase refused to act," attorneys for D.B. said in the filing.

D.B. is seeking a court order requiring Coinbase to return the "traceable" stolen funds.

"Plaintiff contends that he is the rightful owner of the identified frozen cryptocurrency traceable to the theft and that he is entitled to immediate possession of that property," said the lawyers.

The Block has reached out to Coinbase for comment.

Crypto-related fraud has been on the rise, with losses hitting a record $11.3 billion last year, accounting for more than half of the $20.9 billion in total internet crime losses tracked by the FBI, according to a report released last month.


Tip
$0
Like
0
Save
0
Views 430
CoinMeta reminds readers to view blockchain rationally, stay aware of risks, and beware of virtual token issuance and speculation. All content on this site represents market information or related viewpoints only and does not constitute any form of investment advice. If you find sensitive content, please click“Report”,and we will handle it promptly。
Submit
Comment 0
Hot
Latest
No comments yet. Be the first!
Related
OneKey Founder Warning: iPhone Models from 2011 and Earlier May Pose Risks to Cryptocurrency Wallets
OneKey founder Yishi Wang warns not to store encryption wallet seed phrases on older iPhone devices, as some chip-level security vulnerabilities may still be exploitable even after restoring factory settings or disconnecting from the internet. He pointed out that affected models include iPhone, XS, XR, iPhone 11 series, and the second-generation iPhone and SE. Users who have saved recovery phrases on these devices are advised to generate new wallets in a secure environment and transfer their assets accordingly.
crypto.news
·2026-11-01 17:22:10
17
Brazil offers tax incentives and cheap electricity, which could become a "pressure relief valve" for restrictions on data centers in the United States
As opposition to data center construction heats up in communities across the United States, Brazil is attracting computing infrastructure through tax incentives and lower electricity prices. OpenAI, Google, Amazon Web Services, and Microsoft are all increasing their investments locally, while the Brazilian government hopes to use this to enhance data sovereignty and promote the development of local AI.
Fortune
·2026-11-01 17:22:08
16
Bloomberg Says Bitcoin Faces a Critical Turning Point for U.S. Treasuries
Mike McGlone, a senior commodity strategist at Bloomberg Industry Research, believes that a key turning point for Bitcoin relative to U.S. Treasury bonds could mean that the broader crypto market will face downward pressure. He pointed out that if Bitcoin remains below $80,000, the market may encounter more troubles.
U.Today
·2026-11-01 16:21:17
43
Two months after launch, price cut: Xiaomi smart storage available for as low as 2190 yuan on JD.com with an additional 4-year warranty
Xiaomi's first NAS product, "Xiaomi Smart Storage", went on sale on August 27th. According to a report from IT Home, the price of this product has been reduced again on JD.com; the 4TB version is now available for 2190 yuan after the national subsidy, the 8TB version for 2834 yuan, and the 16TB version for 4461 yuan. The official provides a 3-year warranty, while JD.com currently offers an additional 1-year extension of the warranty and a 5-year data recovery service.
The Block
·2026-11-01 16:02:36
34
Bank of America Securities Maintains Buy Rating on AstraZeneca
TipRanks reports that Sachin Jain, an analyst at Bank of America Securities, maintained a buy rating on AstraZeneca in a report released yesterday. The article also mentioned that AstraZeneca currently has a unanimous analyst rating of 'strong buy' with a consensus target price of 15,676.65 pence, representing a 12.30% upside potential from the current level.
Businessinsider
·2026-11-01 15:52:22
34
View More