The August 2025 seizure was linked to alleged proceeds from North Korea IT fraud, while the Iranian owner was never charged or convicted and is now suing Coinbase for $2.8M.
The DOJ (U.S. Justice Department) seized 21.17 BTC and 76.56 ETH in August 2025 without bringing charges against the owner, a move the source described as setting a precedent. The department claimed the assets were proceeds of North Korea IT fraud, but the Iranian owner was never charged or convicted. The owner is now suing Coinbase for $2.8M, adding a civil dispute to a case that sits at the intersection of crypto custody, asset seizure and due-process questions.