An Iranian national living in Spain has launched legal action against Coinbase Global (NASDAQ: COIN) over the alleged seizure of roughly USD$2.8 million in cryptocurrency assets.
The dispute now heads to Ireland’s fast-track Commercial Court after the parties agreed to admit the case on Monday.
Ali Asghar Afrouz, 74, claims Coinbase wrongfully froze and seized Bitcoin and Ethereum held in his account following concerns about the source of his wealth. Additionally, Afrouz alleges the cryptocurrency exchange gave conflicting explanations about what happened to the funds.
Afrouz, who lives in Marbella, Spain, is suing Coinbase Europe Ltd and Coinbase Luxembourg SA. He seeks the return of the assets and an injunction compelling the company to restore account access so he can withdraw the funds. Coinbase Europe operates under the wider Coinbase Group, the largest cryptocurrency exchange in the United States and the world’s biggest Bitcoin custodian. Furthermore, Coinbase Europe falls under regulation by the Central Bank of Ireland.
According to court filings, Afrouz moved to Spain in 2022 and sold a beachfront property in Iran for roughly USD$3 million. He said the property sale generated the funds later converted into cryptocurrency. Afrouz told the court he used intermediaries to convert the proceeds into digital assets. Additionally, he said sanctions against Iran’s banking system forced him to use cryptocurrency to access his money in Spain.
He opened a Coinbase account in July 2025 and later transferred Bitcoin and Ethereum into the platform from a personal wallet.
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Coinbase locked man out of account worth $2.8M.
Court documents state Coinbase later requested additional verification because of recent account activity. However, Afrouz claims the company never clearly explained what information it required.
Afrouz said Coinbase then locked the account without giving him a meaningful opportunity to resolve the issue. At the time, the assets allegedly held in the account carried a value of roughly USD$2.83 million.
He further claims Coinbase adopted contradictory positions about the status of the funds. In one instance, the company allegedly informed him that his account would face permanent deletion.
Meanwhile, Coinbase support staff reportedly emailed Afrouz the following month and said the company was still reviewing the matter. The support team allegedly stated it would provide another update after completing that review.
Afrouz identified Coinbase’s December explanation as the most serious contradiction. According to his court filings, Coinbase said United States Homeland Security Investigations seized the assets in August under a warrant.
Afrouz disputes that claim and says no legal grounds exist for American authorities to seize his funds. Furthermore, he said he remains unaware of any warrant tied to the assets.
He alleges Coinbase either froze the funds internally before any warrant existed or later relied on a foreign warrant to justify the freeze retroactively.
Court filings also state Afrouz received legal advice suggesting an Irish-registered company cannot simply enforce a foreign seizure request without proper legal process in Ireland. Consequently, he argues any valid foreign enforcement action should involve Ireland’s Department of Justice.
Judge Mark Sanfey agreed on Monday to place the case into Ireland’s Commercial Court on consent of both parties. The division handles complex business disputes through an accelerated process.
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