{"id":75286,"date":"2026-07-12T07:34:51","date_gmt":"2026-07-12T07:34:51","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sao-paulo-court-rules-against-coinbase-in-landmark-case-over-100k-self-custody-hack\/"},"modified":"2026-07-12T07:34:51","modified_gmt":"2026-07-12T07:34:51","slug":"sao-paulo-court-rules-against-coinbase-in-landmark-case-over-100k-self-custody-hack","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sao-paulo-court-rules-against-coinbase-in-landmark-case-over-100k-self-custody-hack\/","title":{"rendered":"S\u00e3o Paulo Court Rules Against Coinbase in Landmark Case Over $100K Self-Custody Hack"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">A Brazil court ordered Coinbase to return $100K to a user after unauthorized wallet transactions occurred.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Coinbase lost after failing to prove the user sent the funds or that basic wallet security existed.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">This decision sets a precedent, meaning wallet devs might next face strict liability for user security.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>S\u00e3o Paulo State Court Rules against Coinbase in $100K Trial<\/h2>\n<p>The state of S\u00e3o Paulo has ruled against Coinbase in a case that might set a <a href=\"https:\/\/news.bitcoin.com\/same-risk-same-rules-brazil-to-regulate-crypto-vasps-like-traditional-securities-brokerages\/\">precedent<\/a> in the self-custody <span>cryptocurrency<\/span> wallet provider industry.<\/p>\n<p>The S\u00e3o Paulo State Court ordered Coinbase to return nearly $100K to a user who deposited these funds into the Coinbase wallet, citing the Customer Protection Code provisions, which place the burden of proof for any claim on the business providing the service.<\/p>\n<p>The customer claimed that the funds disappeared from their wallet without authorization. Coinbase alleged that it was not involved in this matter because the wallet\u2019s <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-a-private-key\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">private key<\/a> was under the user\u2019s full control.<\/p>\n<p>Nonetheless, Coinbase failed to prove that the wallet holder did, in fact, initiate this transaction and was unable to demonstrate the existence of security measures to prevent this outcome.<\/p>\n<p>Raphael Souza, a specialized <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">cryptocurrency<\/a> attorney, highlighted the relevance of this decision for self-custody wallet providers, which have a duty to build software resilient enough to withstand these attacks.<\/p>\n<p>Souza told Portal do <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Bitcoin<\/a> that this ruling dismantles two common arguments by <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> companies. <strong>\u201cThe first is that a self-custody portfolio does not generate liability. Anyone who develops and puts a product on the market is responsible for its security, regardless of how the technical architecture works behind it.\u201d<\/strong><\/p>\n<p>This applies to Coinbase, which is a registered company in Brazil, Souza assessed.<\/p>\n<p>The other argument is that technical documents don\u2019t aid in these cases by themselves if companies fail to provide a thorough explanation, aiding courts in understanding them. Magistrate Ju Hyeon Lee criticized Coinbase on this matter.<\/p>\n<p><strong>\u201cCoinbase had every opportunity to prove that the investor authorized the transaction, explain the technical records, and inform where the funds went. It chose not to do any of that,<\/strong>\u201d Souza <a href=\"https:\/\/livecoins.com.br\/justica-condena-coinbase-a-devolver-r-500-mil-e-rejeita-defesa-de-autocustodia\/\" target=\"_blank\" rel=\"noopener noreferrer\">concluded<\/a>.<\/p>\n<p>As the amount presented by the user was not contested, Coinbase was ordered to return the entire amount plus the due legal interest.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/sao-paulo-court-rules-against-coinbase-in-landmark-case-over-100k-self-custody-hack\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways A Brazil court ordered Coinbase to return $100K to a user after unauthorized wallet transactions occurred. Coinbase lost after failing to prove the user sent the funds or that basic wallet security existed. This decision sets a precedent, meaning wallet devs might next face strict liability [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":75287,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75286"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=75286"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/75287"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=75286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=75286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=75286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}