Coinbase Sued by Crypto Whale Over Alleged Refusal to Return Stolen DAI
Summary
Coinbase Global, Inc. is facing a new lawsuit from an anonymous 'crypto whale' alleging the company improperly refused to return frozen DAI cryptocurrency linked to a 2024 theft. The plaintiff claims Coinbase froze the assets but declined to release them without a court order, despite providing proof of ownership. This legal action adds to a recent string of regulatory and legal challenges for Coinbase, including lawsuits from Wisconsin and New York State in late April. While the specific amount of funds held by Coinbase is not disclosed, the original theft involved approximately $55 million in DAI. This lawsuit poses a reputational risk and could influence how the exchange handles similar cases of stolen assets, further increasing its legal overhead.
At the time of this announcement, COIN was trading at $196.95 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $52.2B. The 52-week trading range was $139.36 to $444.65. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: The Block.