Sao Paulo State Court ruled that Coinbase returned nearly $100,000 to users of stolen self-managed wallets

A court in the state of Sao Paulo, Brazil, ruled that Coinbase returned nearly $100,000 to a user who claimed the funds it deposited with CoinbaseWallet disappeared in an unauthorized transaction. Coinbase argued that the wallet's private key was completely controlled by the user, but failed to prove that the transaction was initiated by the wallet holder or that there were security measures to prevent that outcome. The court made a judgment in accordance with the relevant provisions of the Consumer Protection Law and required Coinbase to refund the entire amount and statutory interest.