Overview

Contact Attorney: Matthew J. Goldstein 

Injury: Financial and emotional harm caused by cryptocurrency investment fraud 

Defendant: Coinbase, Inc. 

Practice: Class Action 

Latest Update: October 2025 — FBI seizes $15 billion in crypto assets from Cambodia-based scam center. 

The FBI (Federal Bureau of Investigation) has seized $15 billion in crypto assets from a “pig butchering” scheme based out of Cambodia. The scheme used forced labor to emotionally manipulate targets into investing large sums of money. 

Case Team

Principal Attorney: Mark R. Miller 

Supporting Attorney: Matthew J. Goldstein 

Legal Assistant: Susane Marangoni Molina 

Crypto Class Action Lawsuit: Helping Victims in Coinbase Scam Lawsuits

Our team is investigating allegations that Coinbase, a cryptocurrency exchange, fails to protect its users from crypto investment fraud. Plaintiffs have claimed that Coinbase’s inadequate anti-fraud measures increase customers’ risk of falling prey to “pig butchering” scams. These scams are run by sophisticated fraudsters and designed to take advantage of people via emotional manipulation, often leaving them desperate and overwhelmed. 

While no law firm can guarantee that they will be able to restore stolen funds, the consumer protection team at Wallace Miller is dedicated to fighting for justice for our clients and getting them the compensation they need to move forward. Reach out to our team at (331) 425-8022 or fill out our online case evaluation for a free and confidential assessment of your case. 

Injury

What is “pig butchering”?

A “pig butchering” scam is a colloquial name for cryptocurrency investment fraud. In these schemes, someone reaches out to their target online, often through messaging platforms, social media, or dating apps. Over weeks or months, the scammer poses as a friend, mentor, or romantic partner and gains the victim’s trust. 

The scammer will then pressure or persuade the individual to participate in a supposed investment opportunity. They encourage them to buy crypto through a service like Coinbase and transfer funds to another account. These accounts are often set up through fake websites and applications that look real and seem to show good returns on the investment. Some scammers may even pay out a fake investment return to the target, in order to push them to invest more. 

When the targeted individual attempts to withdraw funds, the scammer will freeze the platform. In some cases, they may demand additional payments to unfreeze the account, but regardless of whether the scam victim pays or not, they will steal the full amount and vanish. These schemes can be devastating financially and emotionally—the target’s trust has been violated and they are often left with nothing. 

With the rise of cryptocurrency platforms, these schemes are increasingly prevalent. The Federal Trade Commission (FTC) reported that more than $4 billion was stolen via these investment scams in 2023 alone, and that number is growing. The perpetrators are often criminal syndicates who kidnap desperate people and force them to work in scam centers under threat of injury, assault, or death. Many of these operations began in Southeast Asia, but now hundreds of thousands of people are exploited in these scam centers across the world.

Plaintiff & Defendant

What is Coinbase?

Coinbase is a leading e-currency exchange that provides a platform for people to buy, sell, and trade cryptocurrency. Cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, are digital currencies created online via encryption algorithms. They are managed via online wallets like Coinbase that store customers’ encryption keys and financial information. 

Coinbase is classified as a “money services business” and is a licensed money transmitter in many states. The company claims that it is a trusted and secure platform on which to trade crypto assets in compliance with state and federal regulations. 

Can Coinbase be held liable for stolen funds?

Lawsuits filed against the crypto company have claimed that its inadequate fraud prevention measures expose people to investment scams. Prior plaintiffs have alleged that Coinbase could have prevented pig butchering scams had they complied with their legal obligations. Instead, the plaintiffs claim that the company has set up intentionally lax fraud prevention measures in order to facilitate more transactions. As a result, Coinbase users are left exposed to possibly disastrous financial and emotional harm.  

Landscape

Federal and state regulations require financial institutions to verify users’ identity, report scams, and take other measures to protect consumers. Because Coinbase is acting as a bank, users of the platform argue that the company is responsible for instituting the same level of fraud protections as banks.  

Because cryptocurrency is relatively new, the regulatory landscape is still developing. There is some debate over whether e-currency platforms like Coinbase can be classified as a bank and held to the same fraud prevention standards as a result. 

Timeline

October 2025 — FBI seizes $15 billion in crypto assets from Cambodia-based scam center. 

The FBI has seized $15 billion in crypto assets from a “pig butchering” scheme based out of Cambodia. The scheme used forced labor to emotionally manipulate targets into investing large sums of money. 

2023 — Coinbase ordered to pay $100 million for fraud law violations. 

The New York State Department of Financial Services (NYDFS) has ordered Coinbase to pay $100 million after an investigation identified failures in its anti-fraud procedures. These failures violated state law and made the platform vulnerable to fraud. 

2012 — Coinbase founded by Brian Armstrong and Fred Ehrsam. 

Contact

Fighting for victims: Meet the consumer protection team at Wallace Miller

“Pig butchering” scams are sophisticated operations designed to emotionally manipulate people. For targets of these scams, the results can be devastating. It’s important to remember that these scammers are experts who prey on innocent people, and falling victim to a scheme like this is not your fault. 

Our consumer protection team is investigating cases against Coinbase alleging that they failed to take the measures required by law to protect their users from fraud. We offer free and confidential evaluations to review your situation with our legal team, help you understand your rights, and discuss your next steps. 

We work on a contingency fee model, so there are no out-of-pocket fees—our law firm only receives payment if you do. To talk to our legal team, reach out at (331) 425-8022 or fill out our online case evaluation for a confidential conversation.