The São Paulo state court ruled that Coinbase must refund nearly $100,000 to users whose self-custody wallets were stolen

A court in São Paulo, Brazil ruled that Coinbase must refund nearly $100,000 to a user who claimed that funds deposited in their Coinbase Wallet disappeared in an unauthorized transaction. Coinbase argued that the wallet's private key is entirely controlled by the user, but failed to prove that the transaction was initiated by the wallet holder, nor did it demonstrate the existence of security measures to prevent this outcome.

The court made its ruling based on relevant provisions of the Consumer Protection Law and ordered Coinbase to refund the full amount along with statutory interest.