A certain whale that lost $55 million in 2024 is suing Coinbase, accusing it of refusing to return stolen funds

According to market news, an anonymous crypto whale residing in Puerto Rico has sued Coinbase, accusing the exchange of refusing to return funds stolen in a 2024 hacking incident.

The lawsuit is highly similar to a security breach in August 2024, when a crypto user lost over $55 million in DAI stablecoins after falling victim to a phishing attack. The plaintiff claims to have hired several on-chain investigation firms to trace the stolen funds, which were tracked to a Coinbase account. Coinbase confirmed in early December 2024 that it had locked the relevant funds but froze them pending investigation. However, a year and a half later, Coinbase has still not returned the funds, claiming that a court order is needed to release them.

The attack was initially identified by on-chain detective ZachXBT, who reported that the hacker created a fake DeFi Saver login page using the "Inferno Drainer" platform, leading the victim to mistakenly hand over control of their wallet to the attacker.