$100,000 Hacked from Coinbase: What to Do and How Legal Action Can Help

Tubrazy Shahid
4 hours ago
4 min read

The rise of cryptocurrency has brought both innovation and opportunity—but also significant risks. Scams, phishing attacks, and unauthorized access to exchange accounts are increasingly common. One of the most painful examples of this is when a user loses a large sum due to a hack on a centralized exchange like Coinbase.

Recently, a distressed individual reached out with the following message:

"Was hacked on Coinbase yesterday. Can you help me? I got scammed and I'm so hurt, in a bad place right now. $100,000 lost. I have emails too."

This article explores what to do next, the legal remedies available, and how victims can fight back.

Understanding the Situation: What Likely Happened

There are several ways a Coinbase user might be hacked or scammed:

Phishing Emails or Fake LinksThe user may have clicked a link that mimicked Coinbase’s login page and unknowingly gave credentials to a scammer.
SIM Swap AttackAttackers may have gained access to SMS-based two-factor authentication (2FA) by taking control of the victim’s phone number.
Malware or KeyloggerDevice compromise might have enabled an attacker to capture login credentials.
Impersonation or Social EngineeringScammers sometimes pretend to be Coinbase support and trick users into providing sensitive information.

Immediate Actions to Take

If you've just discovered a hack or scam, act immediately:

🔒 1. Secure Your Coinbase Account

Log in and change your password.
Enable 2FA using an authenticator app (not SMS).
Revoke any API keys or linked third-party apps.

📩 2. Report to Coinbase Support

File a formal support ticket via Coinbase’s Help Center.Include:
- Account details
- Date and time of unauthorized access
- Email records
- Transaction IDs
Ask for the transaction to be flagged and traced internally.

🕵️ 3. Contact a Cryptocurrency Lawyer

Legal experts can help you file official notices, communicate with the exchange professionally, and escalate your case.

What Legal Options Are Available?

1. File a Formal Complaint with Coinbase

Under Coinbase’s Terms of Use, they are required to safeguard user accounts, but their liability is limited if credentials were compromised by the user.
Legal counsel can frame your claim more effectively, especially if the breach resulted from a flaw in Coinbase’s security, or poor customer response.

2. Submit an FBI IC3 Complaint

For U.S.-based victims, submit a complaint to the Internet Crime Complaint Center (IC3) at ic3.gov.
This helps federal authorities track similar cases and may trigger an investigation.

3. Notify Local Law Enforcement

File a police report. Having this document is important if your case escalates legally or if law enforcement needs to cooperate across jurisdictions.

4. Blockchain Forensics and Asset Tracing

Lawyers working with forensic partners can:
- Trace stolen funds on-chain
- Identify wallets and exchanges the attacker used
- Issue letters of claim or freezing orders to exchanges that received stolen assets

5. Civil Litigation or Arbitration

If Coinbase or any third-party provider was negligent, you may pursue:
- Arbitration (as required in Coinbase’s user agreement)
- Small claims court (for specific jurisdictions)
- Lawsuit, if applicable, in cases of gross negligence

6. Recover from the Perpetrator

If the attacker’s identity is discovered via forensics or exchange cooperation, your lawyer can file a civil recovery suit or refer the case for criminal prosecution.

Emails as Evidence

The client mentioned: “I have emails too.”

These emails can serve as crucial evidence in the following ways:

Proving phishing or impersonation
Documenting Coinbase’s response (or lack thereof)
Showing timeliness of the victim’s action
Supporting a legal claim for negligence or delayed remediation

Legal counsel will review the headers and contents of emails to trace the scam, identify breaches, and construct a case for recovery or compensation.

Challenges to Be Aware Of

Coinbase may limit liability in cases where user credentials were compromised.
Crypto is pseudonymous, making perpetrators hard to trace without legal authority.
Recovery is not always guaranteed—but legal intervention increases the odds significantly.
Timing is critical: the sooner you act, the more likely funds can be traced or frozen.

How Legal Help Makes a Difference

In our experience assisting scam victims, a strategic and well-documented legal response often achieves far better outcomes than acting alone. A cryptocurrency lawyer can:

Communicate formally and effectively with Coinbase
Draft legal notices to third-party exchanges involved
Work with investigators to trace assets
Advise on criminal and civil recovery strategies
Ensure the client meets all legal and evidentiary requirements

A Message to Victims: You’re Not Alone

Being scammed or hacked in the crypto space is emotionally and financially devastating. But you're not alone—and recovery is possible. The law is catching up with crypto fraud, and specialized legal professionals can provide real support in your journey toward restitution and justice.

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Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal or financial advice.

Author & Crypto Consultant

Shahid Jamal Tubrazy (Crypto & Fintech Law Consultant)

Shahid Jamal Tubrazy, a certified top expert in Crypto Law from Duke University, is a leading authority in the cryptocurrency and blockchain space. As a seasoned Fintech lawyer, he offers a full spectrum of services, including licensing, legal guidance for ICOs, STOs, DeFi, and DAOs, as well as specialized expertise in crypto mediation, negotiation, and mergers and acquisitions. With a proven track record and published works on Blockchain Regulation and Cryptocurrency Laws, Shahid provides unparalleled insights into the complexities of the fintech world, ensuring compliance and strategic success. 🌐💼 #CryptoLaw #Fintech #Blockchain #LicenseServices #CryptoMediator #MergersAndAcquisitions #CryptoCompliance #FrozenAssetsrecovery.