MELBOURNE, Fla.–Space Coast Credit Union and cryptocurrency exchange Coinbase have reached a settlement in a lawsuit stemming from alleged unauthorized crypto withdrawals that left a couple out thousands of dollars, according to court filings.
The litigation was brought by Florida residents Justin Rueda and Yanet Echevarria-Cabret, who alleged that hackers accessed their Coinbase account and drained funds using their linked debit card and crypto account, and that both companies failed to adequately investigate and reimburse the losses, court documents show.
Terms of the settlement were not publicly disclosed, and the agreement is subject to court approval.
The lawsuit, filed in federal court in 2025, accused the defendants of violating the federal Electronic Fund Transfer Act and other consumer-protection laws, with the complaint alleging the plaintiffs’ Coinbase account was compromised using stolen credentials and intercepted two-factor authentication codes, allowing a fraudster to liquidate cryptocurrency and make withdrawals.
Additional Allegations
Additional point-of-sale debit transactions allegedly cleared thousands of dollars from the couple’s checking account, plunging the balance into the negative, the lawsuit stated.
The plaintiffs argued both the credit union and the crypto exchange failed to provide adequate safeguards and improperly denied reimbursement for unauthorized transactions. San Francisco-based Coinbase has maintained in prior filings that account holders are responsible for activity that occurs when login credentials are compromised, while financial institutions typically point to card-network rules governing fraud disputes.
The court said it will determine whether to grant final approval to the settlement and dismiss the case.
