Iranian national sues Coinbase over $2.8 million crypto seizure

A 74‑year‑old Iranian national based in Spain has filed a High Court claim seeking the return of $2.8 million (≈ €2.4 million) in cryptocurrency that Coinbase allegedly froze following a U.S. warrant, putting the exchange’s cross‑border enforcement practices under scrutiny [3].

Background to the lawsuit

Afrouz says he sold a beachfront property in Iran for $3 million in 2022 and, to bypass sanctions on Iranian banks, converted the proceeds into bitcoin and ethereum through intermediaries before moving the tokens to his Coinbase account in July 2025 [3]. After a “recent activity” alert from Coinbase, he was told the assets were seized by U.S. authorities under a warrant, a claim he disputes, arguing there is no legal basis for the seizure [3].

Legal proceedings

Judge Mark Sanfey has allowed the case to proceed on a fast‑track basis, reflecting the parties’ consent to a Commercial Court hearing [3]. The suit targets both Coinbase Europe Ltd and its Luxembourg affiliate, entities previously regulated by the Central Bank of Ireland, highlighting the cross‑jurisdictional complexities of crypto custodial services [3].

What to watch

• Any further filings or court rulings that clarify the scope of U.S. warrants on assets held by European‑registered crypto exchanges.
• Potential regulatory responses from the Central Bank of Ireland or other EU authorities regarding custodial obligations and cross‑border asset freezes.
• Updates from Coinbase on its internal compliance procedures for high‑risk accounts, especially those linked to sanctioned jurisdictions.

The case underscores the tension between global sanctions regimes and the decentralized nature of crypto assets, leaving open how courts will balance enforcement against users’ rights to access their holdings.