Crypto Exchanges

Story: Puerto Rico Crypto Victim Sues Coinbase Over $55M in Frozen Hack Funds

By Steven Anderson

1 / 15

How the Hack Went Down. D.B. clicked a malicious link on August 20, 2024. The link looked like it came from DefiSaver, a…

2 / 15

Five Counts Against Coinbase. The lawsuit hits Coinbase with five separate counts. One of them is unjust enrichment—D.B.

3 / 15

Unknown Hackers and a Ukrainian Suspect. D.B. isn't just suing Coinbase. He filed seven counts against an unknown hacker or group of…

4 / 15

A Puerto Rican man lost $55 million in crypto. He tracked the money to Coinbase. Now the exchange won't give it back without a court order, and he's suing.

5 / 15

The plaintiff, identified in court documents only as "D.B.," filed the lawsuit Monday in California.

6 / 15

D.B. clicked a malicious link on August 20, 2024. The link looked like it came from DefiSaver, a legitimate Ethereum DeFi tool that plenty of crypto users trust. It didn't.

7 / 15

The stolen funds didn't sit still. Hackers pushed the DAI through Tornado Cash, a crypto mixing service that obscures transaction trails.

8 / 15

D.B.'s team managed to trace the funds. His agents, Zero Shadow and Five Stones, contacted Coinbase and got the exchange to freeze a retail account holding the stolen crypto.

9 / 15

The lawsuit hits Coinbase with five separate counts. One of them is unjust enrichment—D.B. thinks the exchange probably made money by holding onto his crypto all these months.

10 / 15

He's also asking for a court declaration that he's the rightful owner. Pretty straightforward stuff, but it hasn't been enough to get Coinbase to move.

11 / 15

Coinbase hasn't said anything publicly about the case. Reached for comment, the company didn't respond. The exchange is sticking to its position—no court order, no release.

12 / 15

The timing lines up with a $55 million DAI draining incident reported in late August 2024. Security researchers tied that hack to malware called "Inferno Drainer," which had been…

13 / 15

D.B. isn't just suing Coinbase. He filed seven counts against an unknown hacker or group of hackers, referred to in court documents as John Doe.

14 / 15

See also: CFTC Ruling on Kalshi and Coinbase-Backed Prediction Markets Could Reshape Crypto Betting

15 / 15

The lawsuit names a Ukrainian individual, Oleksiy Oleksandrovych Goreliikhin, as someone who played a role in laundering the stolen funds.

The Currency Analytics

Want the full story?