Crypto Whale Sues Coinbase for Refusing to Return Stolen $55M DAI
An anonymous crypto whale has filed a lawsuit against Coinbase, claiming the exchange wrongly refused to return frozen funds stolen in a 2024 phishing attack.
Lawsuit Details
The plaintiff, identified only as “D.B.,” filed the case on Monday against Coinbase and the alleged thief (“John Doe”). The suit claims that after a phishing scam on August 20, 2024, the attacker used Inferno Drainer to steal roughly $55 million worth of DAI from his wallet.
A portion of the stolen DAI was later traced to a Coinbase retail user account, according to blockchain security firm Zero Shadow.
Coinbase’s Response Criticized
Coinbase froze the funds after being notified by the victim. However, the exchange refused to return the traceable stolen assets to D.B. without a court order confirming ownership.
The plaintiff’s lawyers argued: “While Coinbase acted reasonably in freezing the assets, its refusal to return them became unreasonable once sworn proof of ownership was provided.”
What the Whale Is Seeking
D.B. is asking the court to order Coinbase to immediately return the traceable frozen DAI. The filing states he is the rightful owner and entitled to possession of the stolen funds.
The Block has contacted Coinbase for comment.
Rising Crypto Fraud Concerns
Crypto-related fraud continues to grow, with losses reaching a record $11.3 billion last year — over half of all internet crime losses reported by the FBI.
