Coinbase Sued Over Frozen Crypto Accounts
A 74-year-old pensioner in Spain has filed a lawsuit against Coinbase in Ireland's Commercial Court, alleging that the exchange seized $2.8 million from his account without explanation.
The pensioner, Ali Asghar Afrouz, claims that he sold a beachfront property in Iran for about $3 million in 2022 and moved the proceeds into cryptocurrency, which was then frozen by Coinbase.
Afrouz disputes the explanation provided by Coinbase that the assets were seized by U.S. authorities executing a warrant, and he is seeking the return of his funds, plus an injunction forcing Coinbase to restore his access to the account.
This is not the first time Coinbase has faced similar complaints, with a class action lawsuit filed against the exchange in 2021 over allegations that it locked customers out of their accounts for months without explanation.
Coinbase's compliance and security systems can freeze an account quickly, but the appeals process can be lengthy, leaving customers' savings in limbo.