Coinbase Sued for Refusing to Release $55M Crypto Stolen in Phishing Hack

A Puerto Rican man, identified only as “D.B.” in court filings, has filed a lawsuit against Coinbase Global Inc. after the exchange allegedly refused to release $55 million in cryptocurrency stolen in a sophisticated phishing attack.

The lawsuit, filed on Monday, August 26, 2024, in a California federal court, accuses Coinbase of unjust enrichment and seeks restitution, a court order declaring D.B. the rightful owner, and an order directing Coinbase to return the frozen funds.

How the $55M Crypto Hack Unfolded

According to the complaint, D.B. fell victim to a phishing attack on August 20, 2024, after clicking a malicious link disguised as the Ethereum DeFi management tool DefiSaver.

Unknowingly, D.B. authorized a smart contract permission, granting hackers control over his crypto wallets. The thieves then stole his funds—comprised of the stablecoin DAI—and laundered them using services like Tornado Cash before depositing them into a Coinbase retail account.

Coinbase’s Response: Freezing Funds but Refusing Release

After D.B.’s agents, Zero Shadow and Five Stones, traced the stolen funds and requested their freezing, Coinbase complied. However, the exchange refused to return the crypto unless a court order was secured.

"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."

The lawsuit alleges that Coinbase’s refusal to release the funds—despite clear evidence of ownership—constitutes unjust enrichment.

Key Details Align with $55M DAI Draining Incident

The lawsuit’s timeline and details closely match reports of a $55.43 million DAI theft on August 20–21, 2024, involving the Inferno Drainer malware and manipulation of the DeFi Saver Proxy smart contract.

Crypto analysts at the time criticized the victim for acting "carelessly" by signing the malicious transaction, though D.B. attempted to reverse it upon realizing the fraud.

Legal Claims and Alleged Perpetrators

The lawsuit names John Doe—a placeholder for the unknown hacker(s)—and alleges seven counts, including fraud, theft, and racketeering.

D.B. claims to have identified a suspect: Oleksiy Oleksandrovych Goreliikhin, a Ukrainian national allegedly involved in laundering the stolen funds.

The complaint seeks a constructive trust over any profits Coinbase may have accrued from holding the frozen funds.

Coinbase Has Not Yet Responded to Allegations

Protos has reached out to Coinbase for comment but has not yet received a response. The exchange has not publicly addressed the lawsuit as of the time of writing.