An anonymous crypto whale has filed a lawsuit against cryptocurrency exchange Coinbase, alleging the company improperly refused to return frozen funds linked to a phishing theft that drained $55 million worth of DAI in August 2024.
The plaintiff, identified only as "D.B.," filed the lawsuit on Monday in federal court, naming both Coinbase and an unknown alleged thief, "John Doe." According to the complaint, D.B. fell victim to a scam on Aug. 20, 2024, after logging into a fraudulent page designed to look like the DeFi Saver website. The attacker used Inferno Drainer, a known wallet-draining tool, to siphon DAI from the victim’s wallet.
Blockchain security firm Zero Shadow later traced a portion of the stolen funds to a Coinbase retail user account. Coinbase froze the assets after being notified, but declined to return them to the plaintiff without a court order adjudicating ownership. D.B.’s lawyers argue that while Coinbase acted reasonably in freezing the funds, its refusal became unreasonable after the plaintiff provided sworn proof of ownership. The lawsuit seeks a court order compelling Coinbase to return the traceable stolen cryptocurrency.
The amount frozen in the Coinbase account has not been disclosed. The case could set a legal precedent for how exchanges handle frozen crypto linked to theft, particularly when victims provide evidence of ownership. In the broader context, crypto-related fraud hit a record $11.3 billion in 2025, according to FBI data, accounting for over half of the $20.9 billion in total internet crime losses. U.S. Treasury officials have also flagged mixers, DeFi protocols, and cross-chain systems as channels criminals use to move stolen funds.
Coinbase has not yet issued a public response to the lawsuit.
