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São Paulo court orders Coinbase to repay nearly $100K in wallet case

São Paulo court orders Coinbase to repay nearly $100K in wallet case

The ruling said Coinbase failed to show the user authorized the transfers or that adequate wallet safeguards existed, while broader fraud issues add to scrutiny around the exchange’s security practices.

Fact Check
The claim is corroborated by a Brazilian primary-language source (Livecoins), which reports the São Paulo State Court (TJSP) ordered Coinbase to return R$507,000 (~$100K) to an investor whose crypto disappeared, rejecting the self-custody defense under the Consumer Protection Code because Coinbase failed to prove the transfers were authorized or that adequate wallet safeguards existed. This matches the caller's bitcoin.com article and is independently reproduced by additional Brazilian outlets (sardinha.net, criptoazul). All key elements of the claim — the São Paulo court, the ~$100K/R$507k repayment, the failure to show authorization or safeguards, and the self-custody liability precedent noted by attorney Raphael Souza — are consistent across sources. No direct Coinbase or official court-record confirmation was located, which is the only reason the probability is not higher.
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Summary

A São Paulo State Court ordered Coinbase to return nearly $100K to a user after funds deposited into a Coinbase Wallet disappeared in unauthorized transactions. Applying Brazil’s Consumer Protection Code, the court found Coinbase did not prove that the wallet holder initiated the transfers and also failed to demonstrate that basic security measures such as blocking tools and two-factor authentication were in place. The judge criticized the company for submitting technical records without explaining them in terms the court could readily assess, and ordered repayment of roughly 507,000 reais along with legal charges and court costs equal to 10% of the claim. Raphael Souza, a lawyer focused on digital law, said the ruling could influence how Brazilian courts assess liability for self-custody wallet products, as the country moves toward stronger consumer protection standards for crypto platforms. The case also lands as Coinbase faces wider security-related scrutiny, including scams tied to impostors posing as Coinbase support, criminal charges in Brooklyn over thefts from Coinbase users, and fallout from a 2025 breach involving leaked customer data.

Terms & Concepts
  • self-custody wallet: A crypto wallet in which the user, rather than an exchange, controls access to the assets.
  • two-factor authentication: An added login or transaction security step requiring a second form of verification.
  • Consumer Protection Code: A legal framework that can place the burden on a company to prove it met its duties to customers.