The investor lost funds in a phishing attack back in 2024. Coinbase froze part of the stolen assets but refuses to return them without a court order.
An anonymous investor known as “D.B.” has filed a lawsuit in federal court in San Francisco against Coinbase. He demands the return of approximately $55M in DAI stablecoin that was stolen in August 2024 and partially frozen by the exchange.
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According to the lawsuit, the investor fell victim to a phishing attack. He visited a fake DeFi Saver website, using a .app domain instead of .com, and unknowingly gave wallet access to attackers. The hackers used the Inferno Drainer tool and withdrew the funds.
Coinbase’s Position and the Plaintiff’s Argument
After the victim’s request, Coinbase froze a portion of the stolen funds in one of its users’ accounts. However, the exchange refuses to return them without a court ruling confirming ownership.
The plaintiff’s attorneys stated:
“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.”
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Context and Consequences
The incident occurred in August 2024. More than a year and a half have passed, yet the funds remain unrecovered. The lawsuit emphasizes that the freeze was the right step, but the exchange’s continued refusal sets a precedent that makes it harder for victims to recover stolen assets.
According to FBI data, US losses from crypto fraud reached a record $11.3B in 2025. Many such cases involve phishing and drainers.
Learn more: What Is Crypto Cybersecurity? The Ultimate Guide to Protecting Digital Assets
