An anonymous crypto whale identified as “D.B.” filed a lawsuit on Monday against Coinbase and an alleged thief, alleging the exchange improperly refused to return frozen funds tied to a 2024 crypto theft worth approximately $55 million in DAI, according to the lawsuit filing reviewed by The Block.
Theft Details and Timeline
The plaintiff fell victim to a phishing scam on August 20, 2024, after logging into a fraudulent page that gave the attacker access to his wallet. The thief drained D.B.'s DAI holdings using “Inferno Drainer,” a platform designed to facilitate crypto theft. A portion of the stolen funds was later traced to a Coinbase retail user account, according to the filing, which cited blockchain security firm Zero Shadow. The exact amount of funds stored in the Coinbase account was not disclosed in the filing.
Coinbase’s Response and Legal Dispute
Coinbase froze the assets after D.B. notified the exchange of the theft. However, the company declined to release the funds back to the plaintiff without a court order adjudicating ownership.
“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 and Coinbase refused to act,” attorneys for D.B. stated in the filing.
Plaintiff’s Legal Position
D.B. is seeking a court order requiring Coinbase to return the “traceable” stolen funds. “Plaintiff contends that he is the rightful owner of the identified frozen cryptocurrency traceable to the theft and that he is entitled to immediate possession of that property,” said the lawyers representing D.B.
Broader Context on Crypto Fraud
Crypto-related fraud has been on the rise, with losses hitting a record $11.3 billion in 2025, accounting for more than half of the $20.9 billion in total internet crime losses tracked by the FBI, according to a report released last month.
The Block reached out to Coinbase for comment on the lawsuit.
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