Crypto Whale Sues Coinbase Over Refusal to Return Stolen DAI

Lawsuit Filed After $55M Phishing Theft

A crypto investor has filed a lawsuit against Coinbase, alleging the platform refused to return funds frozen after a major phishing attack in 2024. The plaintiff, identified as D.B., claims to be the victim of a scam that led to the loss of roughly $55 million in Dai.

According to the complaint, the incident occurred on Aug. 20, 2024, when D.B. accessed a fraudulent website that enabled an attacker to gain control of his wallet using the Inferno Drainer phishing tool. The attacker then drained the victim’s holdings, transferring a portion of the stolen funds to accounts linked to centralized exchanges.

Dispute Over Frozen Funds on Coinbase

Blockchain analysis cited in the filing, including work by security firm Zero Shadow, traced part of the stolen Dai to a Coinbase retail account. After being notified, Coinbase froze the assets but declined to release them without a court order confirming ownership.

The plaintiff argues that Coinbase’s refusal became unreasonable after he provided sworn evidence proving ownership of the funds. He is seeking a legal order requiring the exchange to return all traceable assets tied to the theft.

Rising Crypto Fraud and Legal Challenges

The case highlights increasing legal disputes in crypto recovery efforts. Recent data shows crypto-related fraud reached $11.3 billion in losses last year, underscoring the growing scale of phishing attacks and challenges in reclaiming stolen digital assets.