In many investigations, the victim plays a central role—providing details, cooperating with law enforcement, and helping to build the case. But sometimes, that cooperation isn’t possible. And in those cases, the blockchain can speak for itself.
Earlier this year, our team received a request for assistance from third party vendor that their client has been assaulted, coerced into unlocking their phone, and had over $600,000 in crypto stolen. The victim later withdrew support for the investigation and declined to press charges. But by then, we had enough information onchain to take action.
What Happened
The alleged robbery took place at a hotel. The suspects reportedly forced the victim to unlock their device and search through financial apps. When they couldn’t immediately find large holdings, they called a third party for assistance—pressuring the victim to reveal more. The victim claimed he was waterboarded and threatened with violence.
Although he stepped away from the investigation, we were able to trace:
$450,000 USDC sent from the victim’s wallet to a known external address
A separate $150,000 USDC transaction from the same wallet to the same destination
The use of fee-funder accounts to cover gas fees—leading to wallet addresses with ties to known suspects
We followed the trail through decentralized exchanges and ultimately to multiple Coinbase accounts, all of which quickly converted stolen assets into fiat and withdrew the funds.
What We Found
Our analysis uncovered a network of linked accounts:
Two Canadian individuals whose wallets provided gas for stolen asset transfers
Known exposure to criminal activity, including one with ties to historic firearm offenses
A recipient account created just one day before the first withdrawal—almost certainly set up to receive stolen funds
We then alerted Canadian authorities that this had happened.
Why It Matters
This case highlights one of the unique strengths of blockchain-based investigations: traceability doesn’t require a testimony. With traditional financial crimes, when a victim goes silent, the trail often stops cold. But with crypto, we can continue the work.
Even without formal charges or an active law enforcement case, Coinbase was able to:
Identify likely suspects
Link accounts through transaction behavior
Share detailed intelligence through appropriate legal and compliance channels
And should a formal case move forward in the future, the evidence is preserved and ready.
Crypto Crime Is Traceable Crime
This is what we mean when we say that crypto is bad for crime. Unlike cash or even certain banking systems, every action onchain leaves a mark. And when platforms like Coinbase are proactive in reviewing, reporting, and assisting, the system becomes safer—not more vulnerable.
We don’t need a media headline to take action. If there’s a victim—even a quiet one—we’ll do what we can to help.
About Paul Grewal
Paul Grewal is the Chief Legal Officer of Coinbase. Before joining Coinbase, Paul was Vice President and Deputy General Counsel at Meta. Prior to Meta, Paul served as United States Magistrate Judge for the Northern District of California. Paul was previously a partner at Howrey LLP, where his practice focused on intellectual property litigation. Paul served as a law clerk to Federal Circuit Judge Arthur J. Gajarsa and United States District Judge Sam H. Bell. He received his JD from the University of Chicago Law School and his BS in Civil and Environmental Engineering from the Massachusetts Institute of Technology.
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