MDF Law Files Coinbase Lawsuit for Cyber Theft Victims
If you are searching for information about a Coinbase lawsuit, how to sue Coinbase, or what legal options exist after a Coinbase hacking incident, you are not alone. As a major player among crypto exchanges, Coinbase Global is frequently at the center of legal disputes involving digital assets. Our law firm help Coinbase customers who have experienced:
- Identity theft following Coinbase account compromise
- Coinbase accounts hacked or drained without authorization
- Coinbase impersonation scams posing as “Coinbase support” or phishing scams
- Losses tied to the Coinbase data breach or leaked customer information—similar issues have affected other crypto exchanges
- Unauthorized cryptocurrency transfers or account takeovers
- Coinbase denying reimbursement after fraud or hacking
- Ignored security alerts or delayed response by Coinbase
- Frozen or locked Coinbase accounts after suspicious activity
Coinbase Lawsuit Attorney
Helping victims of Coinbase hacking, fraud, and data breaches recover lost cryptocurrency through arbitration and litigation. Call 800-767-8040 for a free and confidential consultation.
Call us at 800-767-8040 or complete the contact form below for more information about filing a Coinbase lawsuit. Our crypto recovery attorneys have experience handing complex Coinbase arbitration matters.
We represent Coinbase customers nationwide in arbitration and litigation after fraud, account takeovers, and data breaches.
Coinbase lawsuits are governed by strict arbitration rules and deadlines. Speaking with a Coinbase lawsuit attorney early helps protect your rights and preserve your claim. Call us at 800-767-8040 for a free and confidential consultation. Our crypto recovery lawyers have the experience and technical skills necessary to prosecute your claims.
Over the past several years, Coinbase customers across the United States have filed widespread complaints after losing cryptocurrency to unauthorized transfers, fake “Coinbase support” scams, and security failures. These losses are not isolated mistakes or one-off incidents. They occurred against a backdrop of documented regulatory findings, enforcement actions, and systemic security breakdowns that raise serious legal questions about whether Coinbase failed to meet its legal obligations to protect customer accounts and data. Many of these lawsuits stem from criminal activity such as fraud, hacking, and insider collusion.
Coinbase’s May 2025 Data Breach Revealed Serious Systemic Failures
The Coinbase security breach in May 2025 exposed deep and systemic problems within Coinbase’s security, oversight, and customer protection systems. This incident has become one of the most significant alleged cybersecurity failures in the cryptocurrency industry.
A small subset of Coinbase users—referred to as affected customers and affected users—were directly impacted by the breach. Tens of thousands of Coinbase users were allegedly exposed to fraud, identity theft, and devastating financial losses. Many victims report that their losses were tied to Coinbase impersonation scams, account takeovers, and unauthorized cryptocurrency transfers that occurred after sensitive customer data was accessed. Attackers obtained stolen data from the breach, further increasing the risk to affected users. As a result, Coinbase complaints by customers have surged nationwide since May 2025.
How the Coinbase Data Breach Allegedly Happened
Public reporting indicates that the Coinbase data breach allegedly stemmed from failures in Coinbase’s outsourced customer support operations. Coinbase relied on overseas support personnel who had access to Coinbase’s internal systems containing highly sensitive customer information. According to allegations, that access was abused.
Beginning in late 2024, criminal groups allegedly infiltrated Coinbase’s customer support ecosystem by bribing overseas Coinbase support agents. These agents allegedly exploited vulnerabilities in internal systems and accessed and copied sensitive Coinbase customer account data, including names, phone numbers, email addresses, government identification details, banking information, balance snapshots, and transaction history.
This type of data is especially valuable to criminals because it allows them to convincingly impersonate Coinbase employees. With real account details in hand, scammers can bypass normal consumer skepticism. These failures are at the center of many Coinbase fraud complaints.
Not a Single Employee — A Coordinated Breakdown
The alleged Coinbase breach was not the result of a single rogue employee. Instead, reports suggest a sophisticated attack involving coordinated groups of support agents working together over an extended period. These individuals allegedly used personal devices to capture Coinbase customer data displayed on work computers, despite policies prohibiting such behavior.
The perpetrators reportedly used social engineering tactics to facilitate the breach, manipulating internal processes and exploiting trust to gain unauthorized access. The scale of the alleged misconduct was significant. Some individuals reportedly accessed information connected to thousands of Coinbase users. Due to inadequate monitoring, weak internal controls, and insufficient oversight, this activity allegedly went undetected for months. These facts align with widespread Coinbase complaints about ignored warnings and lack of oversight.
Coinbase Impersonation Scams and Account Takeovers
Once Coinbase customer data was obtained, it was allegedly used to carry out highly effective Coinbase impersonation scams, which are a form of social engineering attacks. Victims reported receiving phone calls, text messages, and emails that appeared to come directly from Coinbase support.
Scammers referenced accurate, non-public account details, making the communications appear legitimate. Customers were told their Coinbase accounts were compromised or under immediate threat. To protect themselves, customers should verify any communications and only respond to messages from official channels. They were then guided through steps that resulted in transferring cryptocurrency to wallets controlled by criminals.
In many cases, victims did not realize what had happened until their assets were gone. These events are among the most common reasons people search for Coinbase hacked and Coinbase lawsuit attorney.
Financial Losses Linked to the Coinbase Data Breach
The financial impact of the Coinbase data breach and hacking incidents has been enormous. Estimates suggest that losses tied to Coinbase impersonation scams may total hundreds of millions of dollars, with many users losing stolen funds as a result of the breach.
Many affected Coinbase users reportedly lost life savings, retirement accounts, or substantial portions of their net worth. Unlike traditional bank fraud, cryptocurrency transactions are typically irreversible. Once funds leave a Coinbase account, recovery is extremely difficult without legal action. These losses have driven increased searches for how to sue Coinbase and Coinbase arbitration claims.
Ongoing Harm to Coinbase Customers
Beyond immediate financial losses, the alleged Coinbase breach has caused lasting harm. Many users continue to receive scam calls and phishing messages because their personal information remains in circulation. Others face ongoing risks of identity theft, financial fraud, and emotional distress.
Some victims report fear of physical targeting due to criminals’ knowledge of their cryptocurrency holdings and home addresses. These concerns appear repeatedly in Coinbase customer complaints, particularly among older investors and high-net-worth users.
Coinbase’s CEO Addressing the Data Breach
Regulatory Complaint Against Coinbase for Cyber Security Failures
Customer complaints about Coinbase are widespread, and New York State’s 2023 regulatory sanction against them confirmed that many of those complaints trace back to a fundamental breakdown in Coinbase’s transaction monitoring system, including failures in internal systems. As Coinbase grew rapidly, customer complaints increased at the same time its compliance systems fell behind. Coinbase’s transaction monitoring system generated massive numbers of alerts, but the company did not have the staff or systems needed to review them. By late 2021, Coinbase had built up a backlog of more than 100,000 unreviewed alerts. Many alerts sat for months without review. During that time, customers continued to report unauthorized transactions, account abuse, and suspicious activity that was not stopped.
Rather than fixing the problem, Coinbase attempted a quick cleanup by outsourcing alert reviews to third-party contractors. Naturally, this has led to a sharp increase in Coinbase lawsuits and related Coinbase customer complaints. Regulators found this approach failed. Contractors were poorly trained and inadequately supervised. Quality control was weak. When Coinbase later reviewed the work, a large percentage of alerts that had been marked “cleared” were wrong. In some alert categories, nearly all reviewed alerts failed basic quality standards. Coinbase had to re-review tens of thousands of alerts that should have been properly investigated from the start.
These failures help explain the volume and consistency of customer complaints. Transaction monitoring alerts are supposed to detect fraud, account takeovers, and suspicious transfers. When alerts are ignored or dismissed incorrectly, customers lose money. Regulators identified examples of suspicious activity that should have been investigated earlier but was not, allowing bad actors to continue operating on the platform while customers filed complaints. Coinbase’s monitoring failures also led to delayed reporting of suspicious activity. Alerts were not investigated on time, and reports were filed late. Records were incomplete. This made it harder for regulators to intervene and harder for customers to get answers when they complained. Many customers reported long delays, generic responses, or no response at all when reporting fraud or unauthorized transactions.
Regulators concluded that these transaction monitoring failures pointed to deeper, systemic problems in Coinbase’s compliance culture—issues that now sit at the center of many Coinbase lawsuit claims. As Coinbase expanded rapidly, it failed to invest adequately in fraud prevention, oversight, and customer protection. Weak customer risk assessments and poor internal controls undermined the effectiveness of Coinbase’s monitoring systems, making it harder to detect real threats while overwhelming staff with unmanageable alert volume. These breakdowns help explain why so many customers are now pursuing a Coinbase lawsuit after experiencing fraud, unauthorized transactions, or ignored warning signs.
What to Do After Your Coinbase Account is Hacked
Step 1: Notify Coinbase: You should immediately notify Coinbase as soon as you realize there were unauthorized transactions in your wallet. This is an important step to ensure that additional crypto currency is not stolen, but it is also a requirement under certain state and federal laws. When you call Coinbase to notify them of the incident, you should record the calls and save a copy of the recording for law enforcement and your attorney.
Legally, you are permitted to record this call even if you live in a “one party state,” such as California. This is because all of Coinbase’s customer service calls start with the agent notifying the consumer that the call is being recorded. If the agent does not say “we are being recorded,” then you should tell the agent that you are recording the call for your records. The agent will not care that you are recording the call and your failure to tell them could result in an arbitrator precluding that evidence.
Step 2: Mitigate Cyber Risks: After a Coinbase hack, assume your personal information may be compromised. Change the password on all financial accounts, email accounts, cloud storage, and social media—not just Coinbase. Use unique, strong passwords and enable non-SMS two-factor authentication wherever possible to keep your accounts secure. Never share your private keys, and ensure they remain secure at all times. For storing digital assets, use a safe wallet—preferably a hardware wallet or one with robust security features—to protect your funds from unauthorized access. Enroll in identity theft protection services such as LifeLock or a similar provider, place fraud alerts or credit freezes with the credit bureaus, and monitor bank and credit activity closely. These steps help prevent follow-on fraud, identity theft, and additional losses that often occur weeks or months after the initial breach.
Step 3: Gathering Evidence: You should organize and gather any evidence that you may have. If your account was hacked, you should try to gather as much information as you can about the malicious actor. This includes, for example, their IP address and wallet address. Coinbase may restrict or limit your access to information after your account is compromised. Unfortunately, those steps often complicate this process.
Step 4: Hire an Attorney: Coinbase has a very large legal and compliance team, and that matters more than most people realize. When you contact Coinbase about a serious loss, you are not just dealing with customer support. Your messages, tickets, and calls are reviewed with legal risk in mind.
Many clients come to us after contacting Coinbase on their own and saying things they did not realize could be used against them later. Simple statements like “I clicked the link,” “I approved the transaction,” or “I gave the code” are often cited by Coinbase to deny responsibility, even when the loss involved data leaks, impersonation, or ignored warning signs. Once those statements are made, they cannot be taken back.
This is why it is smart to speak with a crypto recovery attorney before formally engaging Coinbase about a large loss. A crypto attorney can help you communicate clearly, avoid damaging admissions, and preserve your legal rights from the start. This does not mean staying silent. It means being careful and deliberate.
We also see many Coinbase complaints where customers contact support repeatedly, wait months for answers, and then miss important deadlines for arbitration or legal claims. By the time they seek legal help, options are narrower than they should be. The bottom line is simple. Coinbase has professionals protecting its interests from day one. You should have a crypto attorney protecting yours before you lock yourself into a position that hurts your case.
Step 5: Notify Law Enforcement:
Start by filing a local police report. First you should bring a clear summary of what happened, including dates, amounts lost, transaction IDs, wallet addresses, and copies of any scam communications. Ask for a report number. Even if the police cannot investigate, the report creates an official record. If is important that your attorney read and approve any written statements you are making to law enforcement. Like statements made to Coinbase, statements made to law enforcement can come back to harm customers.
Next, file a report with the FBI’s Internet Crime Complaint Center (IC3). This is especially important for cryptocurrency fraud. Include accurate details about how the scam occurred, the exchange involved, transaction hashes, wallet addresses, phone numbers, emails, and any supporting screenshots. Be factual and precise.
Save copies of everything you submit, including confirmation emails and report numbers. These records will be evidence in your arbitration against Coinbase. Unfortunately, filing IC3 and police reports do not guarantee recovery or even an investigation. Most crypto theft cases are not individually investigated. The value of reporting is documentation, credibility, and preserving your options.
Step 6: Commence Arbitration before AAA: After the required pre-arbitration notice period, a demand is filed with the AAA. Coinbase responds, an arbitrator is selected, and a schedule is set. The case then moves through document exchange, written submissions, and often expert analysis. Hearings, if required, are usually conducted remotely and the customer is required to provide testimony under oath.
Coinbase has also established a support hub to assist customers after security incidents, providing enhanced support and guidance for affected users.
Attorney Fitapelli Explains How to Sue Coinbase
Frequently Asked Questions: How to Sue Coinbase Under Its Terms of Service
What is your track record against Coinbase?
Our crypto attorneys have successfully litigated countless Coinbase cases in arbitration, including cases involving account takeovers, phishing scams, impersonation scams, security failures, and data breach–related losses. We are familiar with Coinbase’s litigation playbook: delay tactics, procedural defenses, blame-the-user arguments, and aggressive reliance on its Terms of Service. We know how Coinbase defends these cases because we have already faced those defenses and overcome them.
This matters because pays attention when claims are properly framed, procedurally airtight, and supported by expert evidence. Many consumers, especially crypto investors, lose not because their case is weak, but because it is filed incorrectly or without the technical understanding needed to challenge Coinbase’s security defenses. The risk is often the loss of digital assets, which are a relatively new asset class and require strong security measures to safeguard against hacking and theft.
We also understand the arbitration forum itself. Coinbase cases live or die on procedure. We know how to draft the required pre-arbitration notices, comply with AAA rules, preserve statutory claims, and avoid waiver traps. Coinbase regularly wins cases on technicalities against unrepresented users.
Can we see your work product?
Yes, we are also happy to provide references. Below is a copy of a recent AAA complaint we filed for an elderly customer against Coinbase.
Can I sue Coinbase in court?
In most cases, no. Coinbase’s Terms of Service requires disputes to be resolved through binding arbitration rather than a traditional court lawsuit. Claims are typically filed with the American Arbitration Association and proceed under consumer arbitration rules. Although it is rare, our law firm has pursued claims against Coinbase in Court, including claims under the securities laws, which customers can file in New York State or Federal Court under the terms.
Does Coinbase reimburse customers after hacking or a data breach?
Coinbase has publicly stated that it may reimburse some customers, but many users report they have not been reimbursed. If you were not notified or paid early, you should not assume reimbursement will happen. This is a major reason customers pursue a Coinbase lawsuit or arbitration claim. Crypto investors should be aware that the loss of digital assets due to security breaches or hacking can be significant, and reimbursement is not guaranteed.
What law applies to my Coinbase complaint?
Coinbase’s Terms of Service select California law to govern disputes, even if you live in another state. This means many claims are evaluated under California consumer protection, contract, and unfair competition laws. Federal statutes, such as the Electronic Funds Transfer Act, may also apply and are not eliminated by the agreement. Even though California law applies, we still encourage victims to file statutory claims that arise under their induvial state’s laws.
Where do Coinbase arbitration complaints take place?
Coinbase arbitration complaints are administered by the American Arbitration Association and are conducted remotely over Zoom. This is not a requirement, but the custom. If you want your arbitration to be conducted in person, AAA will generally honor that request. This request must be made by the consumer at the time of filing the Demand for Arbitration.
Do I have to send Coinbase a notice before filing my arbitration?
No, but you should. Coinbase requires a formal pre-arbitration notice of dispute, but this requirement may not be enforceable as a matter of law. We believe it is prudent to send the notice simply to avoid a procedural scuffle during a client’s Coinbase arbitration. Your Coinbase lawsuit will go much smoother if you strategically plan ahead to avoid potential issues like this one. Your dispute notice must explain who you are, what happened, the legal basis for your claim, and what relief you are seeking. There is a required waiting period after sending this notice before arbitration can be filed. Failure to follow this step can result in dismissal of the claim, which is an unlikely outcome, but still a possibility that could easily be avoided.
Can I sue Coinbase even if I willingly gave a scammer access to my account?
Yes. Many victims of Coinbase scams can still pursue a Coinbase lawsuit even if they were tricked into providing access to their account. In many cases, losses occur because of Coinbase security failures, data breaches, impersonation scams, or ignored warning signs, not simply because of user error. If a scammer was able to convincingly pose as Coinbase support, access sensitive account information, or bypass normal safeguards, Coinbase may still be legally responsible. Whether you can sue Coinbase depends on how the scam occurred, what protections failed, and whether Coinbase met its obligations to protect customer accounts and data. Crypto investors should always take steps to safeguard their digital assets and report any suspicious activity.
Is there a deadline to file a lawsuit against Coinbase?
Yes. Lawsuits against Coinbase are subject to statutes of limitation and contractual deadlines. Coinbase’s internal reviews or public reimbursement statements do not pause these deadlines. Waiting too long can permanently bar a claim, even if the loss is severe. We recommend customers file their claim within one year of the hacking event. This recommendation is based on the one-year statute of limitations under the Electronic Funds Transfer Act, or EFTA.
Will Coinbase send me a notification if my data was stolen?
Coinbase is required by law to send its customers data breach notifications. Even if you did not receive a notification letter, you can still sue Coinbase for a data breach. In our experience, Coinbase often fails to comply with statutory data breach notice requirements. The notification below is an example of the type of notice that Coinbase may send you. This notice was sent to victims of the May 2025 data breach:
Does Coinbase’s Terms of Service really limit its customer’s liability?
No, those waivers do not stand up to legal scrutiny. Coinbase’s terms of service includes liability limitations and disclaimers, but they are not absolute and are generally unenforceable. Liability cannot be waived for statutory violations, and many waivers do not apply to gross negligence, unfair business practices, or systemic security failures. These provisions are frequently challenged in arbitration and consumers usually prevail. Most AAA complaints against Coinbase are decided on the merits (i.e. who is actually at fault?) and not procedural or technical issues.
Why is my case against Coinbase taking so long?
In real terms, AAA arbitrations against Coinbase typically take one to two years from start to finish. Some resolve sooner, but many do not. Delays are common, especially when the case’s schedule is dependent on the arbitrator – not even you or Coinbase can control this schedule. The most important point is patience. After filing, much of the process involves waiting for deadlines, responses, and rulings. This is normal. Attempting to rush or take parallel actions usually does not help and can hurt the case.
What are the legal consequences for Coinbase if they lose?
If Coinbase is found liable in arbitration or court, they may be required to pay fines, settlements, or other legal penalties. This can include reimbursement to affected crypto investors for lost digital assets, as well as payment of legal fees or regulatory fines related to security breaches or violations.