Coinbase Faces Lawsuit Over Frozen Crypto Assets Tied to Phishing Theft

A civil claim has been filed against Coinbase Global in a California federal court, challenging the exchange's handling of frozen digital assets tied to a $55 million DAI phishing theft in August 2024.

The plaintiff, a Puerto Rico-based individual, is seeking recognition of ownership over the frozen funds and their return. The complaint argues that the funds are identifiable and traceable property, located within a Coinbase account, and should be released to the rightful owner.

The case highlights the tension between custodial risk management and judicial control over the disposition of recovered funds. Exchanges frequently face balancing acts between freezing suspected stolen funds to prevent dissipation and awaiting court orders to release assets to rightful claimants.