In this video, Max Dilendorf, New York-based attorney and founder of Dilendorf Law Firm, explains a costly yet common mistake U.S. clients make when transferring appreciated assets into foreign trusts—unintentionally triggering capital gains taxes under IRS Section 684.

Learn the key differences between domestic trusts (such as Wyoming DAPTs) and offshore structures like Cook Islands and Cayman STAR Trusts, and why proper tax and legal planning is critical before moving assets abroad.

Dilendorf Law Firm represents U.S. and non‑U.S. clients, including high‑net‑worth individuals, global investors, tech founders, and cross‑border families, in matters involving corporate and tax planning, U.S. and foreign real estate purchases, asset protection, and trust formations in both U.S. and offshore jurisdictions.

Watch to understand how to structure your trust plan efficiently, avoid unnecessary tax exposure, and preserve your wealth across borders.

If you have questions or would like to schedule a trust planning consultation, contact us at 212.457.9797 or info@dilendorf.com.

SIM-swap attacks are now one of the most common ways hackers gain illicit access to cryptocurrency accounts. Criminals convince a mobile carrier to reassign a victim’s phone number to a different device, intercept SMS authentication codes, reset passwords, and quickly drain funds. Because crypto transactions are instant, irreversible, and borderless, victims often suffer devastating losses within minutes.

A critical — but frequently misunderstood — issue is whether U.S. mobile carriers are legally responsible when unauthorized access to crypto accounts begins with the compromise of a phone number.

This FAQ explains what AT&T, Verizon, and T-Mobile say about liability, how their contracts are structured, and what crypto users and victims need to know.

1. Are U.S. wireless carriers responsible if a hacker uses my phone number to steal my cryptocurrency?

No. All three major U.S. mobile carriers have adopted contractual language that disclaims liability when a phone number is used — even without permission — to authenticate access to cryptocurrency accounts.

2. What do the agreements specifically say about cryptocurrency-related losses?

AT&T — Direct Disclaimer

“AT&T is not responsible for losses incurred as a result of your or a third-party’s use of your AT&T wireless number […] as a source of authentication or verification in connection with any […] financial, cryptocurrency or other account.”

“There is no security or protection guarantee against unauthorized access […]”

Verizon — Direct Disclaimer

“Disallowed damages include those arising out of […] unauthorized access […] or the use of your account or device by others to authenticate, access or make changes to a third-party account, such as a […] cryptocurrency account, including […] transferring or withdrawing funds.”

T-Mobile — Direct Disclaimer

“We are not liable for damages arising out of […] the use of your account […] to authenticate, access, use, or make changes to any third-party accounts, including financial, cryptocurrency, and social media accounts.”

3. What is a SIM-swap attack and how does it work?

A SIM-swap (also known as SIM hijacking, port-out fraud, or mobile identity takeover) occurs when a fraudster:

1. Poses as the victim with the carrier
2. Requests a number transfer to a new SIM
3. Gains control of SMS & calls
4. Uses SMS-based authentication to reset login credentials
5. Transfers cryptocurrency out of accounts

This can occur via carrier error, weak identity verification, social engineering, or insider misconduct.

4. Why do hackers target cryptocurrency users?

Because:

• Crypto transfers cannot be reversed
• Platforms often rely on SMS 2FA
• Balances may be large and liquid
• Attackers can act globally and anonymously
• Traditional fraud filters don’t apply to blockchain settlement

5. Why is SMS-based security considered unsafe?

SMS was designed for communication, not security. It is vulnerable to:

• SIM-swap fraud
• SS7 network vulnerabilities
• Phishing and spoofing
• Social engineering
• Device cloning
• Malware-enabled message interception

Even the U.S. National Institute of Standards and Technology (NIST) recommends against SMS-based authentication for high-value accounts.

6. Do the carriers guarantee account or identity security?

No, they do not.

AT&T:

“There is no security or protection guarantee against unauthorized access […]”

T-Mobile:

“We do not guarantee that your communications will be private or secure […]”

This means a phone number is not legally considered a security device.

7. What types of damages do carriers exclude?

Most carriers exclude:

• Indirect damages
• Consequential damages
• Punitive damages
• Loss of profits or opportunities
• Financial and asset-withdrawal losses

Example (T-Mobile):

“Neither of us will seek any indirect, incidental, special, consequential, treble, or punitive damages […]”

Crypto losses generally fall into these excluded categories.

8. Can I sue the carrier in court for negligence?

Typically no — carriers require private arbitration, not public litigation, and prohibit class actions.

T-Mobile:

“ALL CLAIMS […] WILL BE RESOLVED BY INDIVIDUAL BINDING ARBITRATION […]”

This means:

• No jury
• No courtroom
• No public record
• No mass filings

9. Can I join a class-action if many people were affected?

No — the agreements prohibit it.

T-Mobile:

“ANY PROCEEDINGS […] WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT AS A CLASS, REPRESENTATIVE, MASS, OR CONSOLIDATED ACTION.”

10. Does the carrier language completely eliminate legal options for victims?

Not necessarily.
Liability waivers do not protect carriers where claims involve:

• Gross negligence
• Policy violations
• Failure to follow authentication protocols
• Insider involvement / employee misconduct
• Misrepresentation or deceptive conduct
• State or federal privacy law violations
• Failure to detect or act on fraud indicators

These cases are fact-specific — evidence matters.

11. What evidence should victims immediately preserve?

• SMS, email, and account-alert logs
• Timeline of service interruption
• Carrier customer-service transcripts
• Employee names or agent IDs
• IP addresses and device-log entries
• Blockchain transaction IDs
• Ticket and complaint numbers
• Screenshots of all actions and communications

Digital forensics and timeline clarity are critical.

12. How can victims protect themselves going forward?

Use strong authentication (hardware key or authenticator app), avoid using your phone number for security or recovery on important accounts, move digital assets to secure wallets (especially hardware or multi-sig), and ask your carrier to enable all available security features, including port-freeze, SIM-swap lock, and unique passcodes. Treat your phone number as vulnerable, not as a security tool.

13. What actions can carriers take that increase liability risk?

• Approving SIM changes without proper ID
• Ignoring documented fraud warnings
• Allowing remote changes despite account flags
• Failing to escalate suspicious requests
• Failing to follow industry-standard authentication

14. What issues may be relevant when evaluating a SIM-swap case?

Every situation is fact-specific, and different details can influence how a dispute may be viewed or analyzed.

Examples of potentially relevant issues may include how the SIM change was approved, what verification steps were used at that time, whether there were any prior fraud warnings or security flags, whether internal policies were followed, whether the account had additional security features enabled, whether the customer contacted the carrier promptly after detecting unauthorized access, and whether there are available records (such as timestamps, chat transcripts, call logs, agent notes, and notifications) that can establish what occurred and when.

Documentation, clarity of events, and available evidence often play an important role in understanding these incidents.

15. When should a victim contact an attorney?

Early engagement can help ensure that communications, documentation, and timeline records are properly maintained and organized, and that any necessary steps are taken in an appropriate sequence. For that reason, many individuals choose to contact an attorney as soon as they become aware of unusual account activity or a potential SIM-swap event.

Contact Us

When a Verizon SIM-swap leads to unauthorized access and loss of cryptocurrency, timely and strategic action is critical.

With over six years of experience and a record of handling more than 100 consumer arbitration cases, our firm has pursued claims against major cryptocurrency exchanges as well as leading phone carriers such as Verizon, T-Mobile, and AT&T.

Our attorneys are experienced in navigating proceedings before AAA, JAMS, and NAM, and understand the procedural and strategic nuances that can make or break a case. We also represent victims whose assets were stolen not only from regulated exchanges but also from self-custody wallets like MetaMask and other decentralized platforms.

Reach out to us today to discuss your case and legal options: (212) 457 9797 | info@dilendorf.com.

Attorney Advertising. Prior results do not guarantee a similar outcome. This information is provided for educational purposes and is not legal advice.

 

New York attorney Max Dilendorf, practicing in crypto law since 2017, explains advanced asset protection strategies for tech founders and digital asset holders.

In this video, Max covers proven legal tools—Family Limited Partnerships (FLPs), Domestic Asset Protection Trusts (DAPTs), and offshore solutions like Cayman STAR Trusts—that safeguard startup equity, crypto, IP, and real estate.

Learn why these structures shield assets from lawsuits, creditors, and unforeseen events, and how Swiss and Liechtenstein trust companies add another layer of global security.

This guide is essential for U.S. and international founders who want to build effective estate plans and keep their digital wealth safe.

Want to protect your assets? Call Dilendorf Law Firm at 212.457.9797 or email md@dilendorf.com for asset protection, estate planning, and trust support.

When a Verizon Wireless account is compromised—especially through a SIM-swap attack—criminals can gain control of text messages, reset credentials, and drain financial accounts, including cryptocurrency wallets. Verizon’s Customer Agreement requires most disputes to be resolved through individual arbitration rather than litigation in court.

This FAQ explains how the arbitration process works and what customers should know before pursuing a claim.

1) If my Verizon Wireless account was compromised and I suffered losses, what is the process for pursuing a claim?

If unauthorized access to your Verizon Wireless line led to financial loss—including stolen cryptocurrency—your claim will generally proceed through individual arbitration under Verizon’s Customer Agreement.

Verizon explains:

“YOU AND VERIZON BOTH AGREE TO RESOLVE DISPUTES ONLY BY ARBITRATION OR IN SMALL CLAIMS COURT […]”

You cannot bring your claim before a jury, and court litigation is not allowed except in limited small-claims situations.

Before filing arbitration, Verizon requires that you submit a written Notice of Dispute and allow Verizon up to 60 days to attempt informal resolution. If the issue is not resolved, you may then file your arbitration demand.

2) Can I seek compensation from Verizon if a SIM-swap led to crypto or financial losses?

Potentially, yes. SIM-swap incidents can allow criminals to gain control of mobile accounts, reset credentials, access digital wallets, and steal crypto assets.

The arbitration clause applies broadly to:

“[…] any dispute that in any way relates to or arises out of this Agreement […] including any equipment, products and services you receive from us […] [and] alleged […] invasion of privacy […]”

Because SIM-swaps often involve privacy breaches, identity theft, and unauthorized access, they fall within Verizon’s arbitration process. An arbitrator has authority to award damages and other relief.

3) What steps are required before I can file arbitration with Verizon Wireless?

Verizon requires completion of a mandatory informal dispute-resolution process.

According to the Customer Agreement:

“the party seeking arbitration must first notify the other party of the dispute in writing at least 60 days in advance […]”

This Notice must contain enough information for Verizon to evaluate the claim. If Verizon and the customer cannot resolve the dispute within 60 days, then arbitration may proceed.

Failure to follow this process can delay or prevent arbitration from going forward.

4) How do I properly submit Verizon’s Notice of Dispute form?

Verizon requires use of its online Notice of Dispute form.

Notice must be submitted on an individual basis, not as part of a group. If you are represented by an attorney, you must indicate representation and authorize Verizon to speak with counsel about the account.

Our firm assists clients in preparing complete Notices of Dispute.

5) What details and documents should I provide in my Notice of Dispute to Verizon?

Your Notice must include:

“[…] the name of the Verizon wireless account holder, the mobile telephone number at issue, a description of the claim, the specific facts supporting the claim, the damages the party claims to have suffered and the relief the party is seeking.”

Supporting materials can include:

• Account screenshots
• Carrier logs
• Police reports
• Crypto-transaction records
• Identity-theft or fraud reports

6) How long after submitting a Notice of Dispute do I need to wait before filing arbitration?

You must wait 60 days after Verizon receives the Notice of Dispute.

Per Verizon:

“If either party has provided this information and the parties are unable to resolve their dispute within 60 days, either party may then proceed to file a claim for arbitration.”

This 60-day period is mandatory.

7) What is the correct legal entity name to list when filing an arbitration demand against Verizon?

Arbitration demands must name the correct Verizon legal entity:

Cellco Partnership d/b/a Verizon Wireless

Using incorrect entity information can delay or impair the claim.

8) How do I begin arbitration if Verizon does not resolve my claim?

After waiting the required 60 days following Notice submission, you may file arbitration against Cellco Partnership d/b/a Verizon Wireless.

Arbitration is initiated by filing with the American Arbitration Association (AAA) in accordance with the AAA Consumer Arbitration Rules. Your filing should include:

• A description of the claim
• Damages sought
• Supporting documents

Our firm handles AAA filings for clients.

9) Which organization administers arbitration for Verizon Wireless disputes?

Verizon uses the American Arbitration Association (AAA).

“ANY DISPUTE WILL BE RESOLVED BY […] NEUTRAL ARBITRATORS BEFORE THE AMERICAN ARBITRATION ASSOCIATION (‘AAA’).”

If AAA cannot or does not administer the arbitration, the Customer Agreement provides a backup process to select another arbitral forum, including possible appointment by a court.

AAA rules are available at www.adr.org.

10) Where will my arbitration hearing take place, and can it be remote?

Unless the parties agree otherwise, the hearing typically takes place in the county where your billing address is located.

“[…] the arbitration will take place in the county of your billing address […]”

Remote hearings (telephone or video) are available in certain circumstances, particularly for smaller claims.

11) Is my case decided through documents only, or will there be a hearing?

For claims under $25,000, customers can choose the process:

“[…] you can choose whether you’d like the arbitration carried out based only on documents… or by a hearing in person or by phone.”

Larger or more complex claims typically involve a hearing.

12) Do I have to pay filing or arbitration fees, or does Verizon cover them?

Verizon pays virtually all arbitration-related fees.

Per the Customer Agreement:

“Verizon will reimburse any filing fee that the AAA charges you […] Verizon will also pay any administrative and arbitrator fees […]”

This makes arbitration relatively low-cost for consumers.

13) If I win, can I recover attorney’s fees?

Possibly. Verizon states:

“If the law allows for an award of attorneys’ fees, an arbitrator can award them too.”

Arbitrators can also award damages and other relief available under applicable law.

14) Do I need a lawyer to file arbitration against Verizon Wireless?

You are not required to have a lawyer, but having counsel is recommended.

These cases often involve:

• Complex fact patterns
• Blockchain transaction tracing
• Carrier record analysis
• Privacy and identity-theft issues

Experienced counsel improves your ability to present a complete claim and recover losses.
Our firm handles Verizon SIM-swap arbitration matters nationwide.

15) How long does a Verizon Wireless arbitration typically take?

Timeframes vary, but Verizon states that arbitrators should resolve claims:

“[…] within 120 days of appointment or as swiftly as possible thereafter[…]”

With the informal process, filing, discovery, and hearing, most matters take several months to about a year.

Contact Us

When a Verizon SIM-swap leads to unauthorized access and loss of cryptocurrency, timely and strategic action is critical.

With over six years of experience and a record of handling more than 100 consumer arbitration cases, our firm has pursued claims against major cryptocurrency exchanges as well as leading phone carriers such as Verizon, T-Mobile, and AT&T.

Our attorneys are experienced in navigating proceedings before AAA, JAMS, and NAM, and understand the procedural and strategic nuances that can make or break a case. We also represent victims whose assets were stolen not only from regulated exchanges but also from self-custody wallets like MetaMask and other decentralized platforms.

Reach out to us today to discuss your case and legal options: (212) 457 9797 | info@dilendorf.com.

Attorney Advertising. Prior results do not guarantee a similar outcome. This information is provided for educational purposes and is not legal advice.

 

If your T-Mobile account was compromised—especially due to a SIM-swap attack or unauthorized access—you may be entitled to compensation. Under T-Mobile’s Terms & Conditions (“Terms and Conditions” or “T&Cs”), most disputes must be resolved through individual binding arbitration rather than through court litigation.

This guide explains how to follow the required steps, including sending a Notice of Dispute, serving T-Mobile’s registered agent, and filing your arbitration demand with the American Arbitration Association (AAA).

1) My T-Mobile account was compromised. Can I take T-Mobile to court?

Typically, no. Under T-Mobile’s Terms and Conditions, most disputes must be resolved through individual binding arbitration rather than in court.

T-Mobile states:

“YOU AND WE EACH AGREE THAT, EXCEPT AS PROVIDED BELOW, ALL CLAIMS AND DISPUTES BETWEEN YOU AND T-MOBILE WILL BE RESOLVED BY INDIVIDUAL BINDING ARBITRATION OR IN SMALL CLAIMS COURT.”

This means customers generally cannot file a lawsuit in court, unless a narrow exception applies (e.g., timely opt-out or qualifying small-claims matter).

2) I lost money after a SIM-swap. Can I make T-Mobile pay for my losses?

Potentially, yes. SIM-swap attacks often lead to financial harm, including theft of cryptocurrency or access to financial accounts. These losses may support claims relating to T-Mobile’s privacy or security practices.

The Terms and Conditions expressly cover:

“CLAIMS AND DISPUTES IN ANY WAY RELATED TO OR CONCERNING […] PRIVACY OR DATA SECURITY PRACTICES […] SERVICES, DEVICES, OR PRODUCTS […]”

An arbitrator may award monetary damages and other relief.

3) Does T-Mobile force customers into arbitration?

T-Mobile requires arbitration for nearly all disputes unless the customer properly opted out within 30 days.

“YOU MAY CHOOSE TO PURSUE YOUR CLAIM IN COURT […] IF YOU OPT OUT OF THESE ARBITRATION PROCEDURES WITHIN 30 DAYS […]”

If no timely opt-out was submitted, arbitration applies. Customers may still proceed in small-claims court if eligible.

4) What do I need to do before I can file an arbitration claim?

You must give T-Mobile a chance to resolve the problem informally by sending a Notice of Dispute.

Per the Terms and Conditions:

“For all disputes or claims you have, you must first give us an opportunity to resolve your claim by sending a written description of your claim (‘Notice of Dispute’).”

You must then wait up to 60 days for T-Mobile to respond.

5) What exactly should I say in the Notice of Dispute?

The Notice must include specific details:

“(a) the name of the T-Mobile account holder; (b) billing account number; (c) the mobile telephone number at issue; (d) a written description of the problem, relevant documents and supporting information; and (e) a good faith calculation of the damages […] and […] the specific relief you are seeking.”

If you are represented by counsel, include written authorization allowing T-Mobile to communicate with your attorney. Our firm assists clients by drafting and submitting Notices of Dispute.

6) Where do I send the Notice of Dispute?

T-Mobile directs customers to mail their Notice to:

T-Mobile Customer Relations
P.O. Box 37380
Albuquerque, NM 87176-7380

Per the Terms and Conditions:

“Mail notices are considered delivered 3 days after mailing.”

We recommend certified or trackable mail.

7) What happens after T-Mobile receives my Notice of Dispute?

You and T-Mobile have 60 days to try to resolve the issue.

The Terms and Conditions explain:

“[…] neither of us may commence any arbitration […] unless you and we are unable to resolve the claim(s) within 60 days after receipt of the Notice of Dispute […]”

T-Mobile may request additional information or discuss settlement. If no resolution is reached, you may proceed to arbitration.

8) How long do I have to wait before filing arbitration?

You must wait 60 days after T-Mobile receives your Notice of Dispute. If the claim remains unresolved after 60 days, arbitration may be initiated.

9) How do I officially start the arbitration process?

Arbitration begins when you both:

• Send a letter requesting arbitration to T-Mobile’s registered agent, and
• File with the American Arbitration Association (AAA)

The Terms and Conditions provide:

“To begin arbitration, you must send a letter requesting arbitration and describing your claim to our registered agent […] and to the American Arbitration Association (‘AAA’).”

T-Mobile identifies its registered agent as:

“Corporation Service Company […] 1-833-441-2890.”

Our firm handles this process for clients.

10) Who actually runs the arbitration?

The arbitration is administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules.

“The arbitration of all disputes will be administered by the AAA under its Consumer Arbitration Rules […]”

AAA oversees arbitrator appointment and case management.

11) Where will my arbitration hearing take place?

Under the Terms and Conditions:

“Arbitration or court proceedings must be in the county and state or jurisdiction in which your billing address […] is located […]”

Remote hearings may be available.

12) Who picks the arbitrator — me or T-Mobile?

Both parties participate in selection. The AAA provides a list of candidates, and each side can strike and rank individuals.

The Terms and Conditions specify:

“The AAA will send the parties a list of five candidates;[…] each party shall […] strike up to two candidates, and rank the remaining candidates […] [and] the AAA shall appoint as arbitrator the candidate with the highest aggregate ranking.”

13) How much does arbitration cost?

To begin an arbitration against T-Mobile, the consumer filing fee with the American Arbitration Association (AAA) is $225 under the AAA Consumer Arbitration Rules.

14) Can I get my attorneys’ fees paid if I win?

Yes. The arbitrator may award:

“[…] any relief that would be available in a court, including injunctive or declaratory relief and attorneys’ fees.”

15) Can I handle the arbitration myself without a lawyer?

It is legally allowed, but not recommended. Arbitration is a formal legal process involving written submissions, document exchange, expert evidence, and a hearing.

Dilendorf Law Firm routinely represents individuals in SIM-swap and digital-asset arbitration matters and can manage the full process on your behalf.

Contact Us

When a T-Mobile SIM-swap results in unauthorized access and the loss of cryptocurrency, taking timely and strategic action is critical. Our firm represents clients in arbitration and develops comprehensive, evidence-based claims to help pursue recovery.

With over six years of experience and a record of handling more than 100 consumer arbitration cases, our firm has pursued claims against major cryptocurrency exchanges as well as leading phone carriers such as Verizon, T-Mobile, and AT&T.

Our attorneys are experienced in navigating proceedings before AAA, JAMS, and NAM, and understand the procedural and strategic nuances that can make or break a case. We also represent victims whose assets were stolen not only from regulated exchanges but also from self-custody wallets like MetaMask and other decentralized platforms.

Reach out to us today to discuss your case and legal options: (212) 457 9797 | info@dilendorf.com.

Attorney Advertising. Prior results do not guarantee a similar outcome. This information is provided for educational purposes and is not legal advice.

 

 

New York attorney Max Dilendorf has practiced crypto law since 2017. He shares practical ways to protect your digital assets.

Max has helped over 100 clients in crypto custody cases. He explains why storing crypto on U.S. exchanges is risky.

Max covers family limited partnerships, Cayman trusts, Swiss and Liechtenstein custodians, U.S. hybrid trusts, and LLC structures.

This video is for anyone who wants to build an estate plan and keep crypto safe.

Want to protect your crypto? Call Dilendorf Law Firm at 212.457.9797 or email md@dilendorf.com for asset protection, estate planning, and trust advice.

When a Coinbase exchange account is compromised, victims often feel helpless — the platform is slow to respond, funds disappear quickly, and there’s no way to “reverse” a blockchain transaction.

But Coinbase’s User Agreement provides a clear legal path to pursue claims.

This guide walks you through every stage — from filing your initial support ticket to submitting a formal complaint and, if needed, pursuing your claim through the next level of dispute resolution.

1. Can I sue Coinbase in court after my account is hacked?

No. Coinbase’s User Agreement requires disputes to be resolved through binding arbitration, not through state or federal court (with very limited e xceptions).

Appendix 5: Arbitration Agreement
“You and we agree to arbitrate all Disputes in binding arbitration except for the following types of Disputes […]”

In other words:

• You can’t sue Coinbase in court for most hacking-related claims.
• You waive your right to a jury trial.
• You can’t join a class action.

Most hacked-account claims must go through AAA (American Arbitration Association) or JAMS.

2. What should I do first if my account is hacked?

Your first step is to notify Coinbase immediately by filing a support ticket through their help center: help.coinbase.com.

Section 7.1: “If you have feedback, or general questions, contact us via our Customer Support webpage at https://help.coinbase.com.”

This ticket:

• Documents the incident.
• Creates a case number, which is required for the next stage.
• Shows you acted promptly after discovering the hack.

Include as much detail as possible: date and time of the incident, transaction IDs, wallet addresses, suspicious activity, and any phishing or SIM-swap details if applicable.

3. What is the Formal Complaint process and why is it required?

Before filing any arbitration claim or small claims action, you must complete the Formal Complaint process.

Section 7.2:
“If we cannot resolve the dispute through Coinbase Support, you agree to use the Formal Complaint Process set forth below before filing any arbitration claim or small claims action as described further in Appendix 5 below. You must complete the Formal Complaint Process before filing any arbitration or small claims action. If you do not complete it, then you agree that your claim or action must be dismissed from arbitration or small claims court.”

How to file a complaint:

Submit the complaint online using Coinbase’s complaint form.

Section 7.2.1:
“In the event that the dispute is not resolved through your contact with Coinbase Support, you agree to use our complaint form to describe your dispute, how you would like us to resolve the complaint, and any other relevant information.”

Include your support case number, a short description of the hack, the amount stolen, the resolution you seek, and any supporting documents.

Check out our step-by-step guide: How to Give Notice to Coinbase: Formal Complaint Guide

4. How long does Coinbase have to respond to my complaint?

Coinbase has 45 business days to respond to your complaint.

Section 7.2.1:
“The Formal Complaint Process is completed when Coinbase responds to your complaint or forty-five (45) business days after the date we receive your complaint, whichever occurs first.”

If Coinbase doesn’t resolve the issue after this period, you can proceed to arbitration or small claims court.

5. What are my options if Coinbase doesn’t resolve my complaint?

If Coinbase doesn’t resolve your dispute within the 45-day complaint period, you have two options:

1. File a claim in small claims court — but only if your claim meets the court’s jurisdictional limits and remains in small claims court.
2. Proceed to binding arbitration — which applies to most hacked-account cases.

Appendix 5:
“You and we agree to arbitrate all Disputes in binding arbitration except for the following types of Disputes: […] Disputes that are within the jurisdiction of a small claims court. You and we agree that if a Dispute could be brought in a small claims court in the county or parish in which you reside, then it must be brought in that small claims court, not arbitration, provided that it remains in that court and is not removed or appealed to a court of general jurisdiction.”

Most hacking-related disputes involve amounts above small claims limits or become too complex for small claims court, so arbitration is the more common route.

6. How do I file an arbitration claim against Coinbase?

Once the 45-day complaint period has passed and your issue remains unresolved, the next step is to formally file for arbitration.

It starts with completing the AAA Consumer Arbitration Demand Form through adr.org.

Your arbitration demand must include all applicable claims and adhere to the statute of limitations. Missing critical details or deadlines could weaken or void your case.

Appendix 5:
“You and we agree that arbitration under this Arbitration Agreement will, depending on the circumstance, be administered by the American Arbitration Association (‘AAA’) subject to the AAA’s Consumer Arbitration Rules then in effect, except as modified by this Arbitration Agreement. If the AAA is unable or unwilling to administer the arbitration […] you and we agree that JAMS will administer the arbitration.”

This marks the official beginning of the arbitration process. From here, the case moves forward according to the schedule set by the arbitrator.

7. How much does it cost to file an arbitration claim against Coinbase?

Filing an arbitration claim involves a consumer filing fee, which is typically capped at $225 under the AAA Consumer Arbitration Rules.

Coinbase covers the remaining administrative and arbitrator costs, so customers are only responsible for this initial filing fee. Once your claim is submitted, a neutral arbitrator is appointed, and both parties attend a virtual scheduling conference to set deadlines and outline the next steps in the case.

This process ensures the arbitration remains accessible and cost-effective for individual claimants.

8. How long does the arbitration process usually take?

Arbitration isn’t resolved overnight. It typically unfolds over several months — often around 9 to 12 months from filing to decision.

9. Do I need a lawyer to file arbitration against Coinbase?

You’re not required to hire a lawyer, but Coinbase will have legal counsel representing it in arbitration. Having an attorney can make a big difference — they’ll make sure your complaint and arbitration demand meet Coinbase’s procedural requirements, help you gather and organize evidence, and handle all filings and deadlines.

10. How does Coinbase limit its liability?

Coinbase’s Section 8.2 places strict limits on damages:

“IN NO EVENT SHALL COINBASE […] BE LIABLE (I) FOR ANY AMOUNT GREATER THAN THE VALUE OF THE SUPPORTED DIGITAL ASSETS ASSOCIATED WITH YOUR DIGITAL ASSET WALLET AT THE TIME OF THE EVENT […] OR (II) FOR ANY LOST PROFITS, LOSS OF GOODWILL, LOSS OF DATA, DIMINUTION IN VALUE OR BUSINESS OPPORTUNITY, ANY SPECIAL, INCIDENTAL, INDIRECT, INTANGIBLE, OR CONSEQUENTIAL DAMAGES […]”

This means your recovery is generally capped at the value of the stolen crypto at the time of the hack. Coinbase will also argue it isn’t responsible for “glitches,” “bugs,” or third-party actions. A strong legal strategy anticipates these defenses.

Contact Us

If your crypto was stolen from Coinbase exchange and you’re ready to take action, we can help you file your claim, prepare your evidence, and navigate the arbitration process.

With over six years of experience and a record of handling more than 100 consumer arbitration cases, our firm has pursued claims against major cryptocurrency exchanges as well as leading phone carriers such as Verizon, T-Mobile, and AT&T.

Our attorneys are experienced in navigating proceedings before AAA, JAMS, and NAM, and understand the procedural and strategic nuances that can make or break a case. We also represent victims whose assets were stolen not only from regulated exchanges but also from self-custody wallets like MetaMask and other decentralized platforms.

Reach out to us today to discuss your case and legal options: (212) 457-9797 | info@dilendorf.com.

Attorney Advertising. Prior results do not guarantee a similar outcome. This information is provided for educational purposes and is not legal advice.

 

In this episode, New York attorney Max Dilendorf, who has practiced in crypto law and the digital asset space since 2017, breaks down the biggest mistakes people make in crypto estate planning for 2025.

Learn why leaving assets on crypto exchanges and relying solely on a basic will could put your legacy at risk, and what you should do instead.

Max shares practical strategies using revocable trusts, multi-signature wallets, and offshore options like Swiss custody or offshore trusts.

If you’ve built substantial crypto wealth or want to protect your family’s digital future, this is video.

Ready to secure your crypto legacy? Contact Dilendorf Law Firm at 212.457.9797 or email md@dilendorf.com for a confidential consultation on asset protection and inheritance solutions for digital assets.

If your Binance.US account was compromised, the path to resolution exists. These FAQs explain, step by step, who you’re dealing with, the required pre-filing steps, how arbitration works, what it costs, and how to build a strong, well-documented claim to recover your losses.

1. Can I sue Binance.US in court after a hack?

No. Under the Terms, customer disputes go to binding arbitration, not court:
“Arbitration shall be conducted in accordance with the rules of the American Arbitration Association (‘AAA’), Consumer Arbitration Rules, in effect on the date of the Terms you are currently bound by […] [BAM and You] waive any right to proceed in a court of law or to have their claims heard by a jury.”

2. Who exactly do I file against?

BAM Trading Services, Inc. (Binance.US)—not Binance.com. Your notices and arbitration are filed against BAM Trading Services, Inc. Using the wrong entity can delay or derail your claim.

3. What does arbitration look like under the Terms?

Per the Terms:
“The arbitration shall: (1) be conducted by a single, neutral arbitrator in the English language; (2) be held virtually and not in person for all proceedings related to the arbitration, except by mutual agreement of all parties; and (3) be limited to one deposition per party, except by mutual agreement of all parties or upon a showing of need.”
For smaller claims:
“Furthermore, in cases where neither party’s claim(s) or counterclaim(s) exceed $25,000, both parties agree to waive an arbitration hearing and resolve the dispute solely through submissions of documents to the arbitrator.”

4. What steps are required before I can file arbitration?

You must complete all pre-arbitration steps in order:

1. Open a Support Ticket (report the hack).
2. Submit a Formal Complaint to resolutions@binance.us with a clear description and evidence.
3. Send a Notice of Dispute to legal@binance.us (account info, claim summary, and what you want).
   After Binance.US receives a complete Notice:
   “Once a complete Notice of Dispute has been received, the recipient has 60 days to investigate the claims […]. An arbitration cannot be filed until the Informal Resolution Period has ended.”

Skipping or mishandling this Notice lets Binance.US ask the arbitrator to delay or dismiss your case.
(See our companion guide: What to Do If Your Binance.US Account Gets Hacked)

5. How do I actually file with AAA?

After the 60-day informal period ends, submit the AAA Consumer Arbitration Demand Form online (through adr.org) and pay the consumer filing fee.

6. How much will this cost me?

The Terms state:
“Costs of arbitration, including AAA administrative fees, shall be apportioned between you and BAM in accordance with the AAA Consumer Arbitration Rules.”
In practice, the consumer filing fee is capped under the AAA Consumer Rules, and Binance.US covers most administrative/arbitrator fees.

7. What should I expect after filing?

Arbitration begins when you file your claim with AAA and pay the consumer filing fee. Binance.US must then pay the remaining administrative and arbitrator costs under AAA’s fee schedule.

AAA appoints a neutral arbitrator, and a short online scheduling call will set the deadlines for the case. The process includes limited evidence exchange—usually just one deposition per side—and a hearing if necessary. For smaller claims, the case is often resolved entirely on the written submissions.

Most cases take nine to twelve months from filing to decision.

8. What evidence should I gather to strengthen my claim?

Arbitrators rely heavily on the documents submitted. A clean and well-organized file can make or break your case. Make sure to collect transaction IDs, timestamps, screenshots of your account activity, login and device logs, any suspicious API key activity, and all emails or messages with Binance.US support.

It’s also smart to file an IC3 report with the FBI and make a police report—these documents add credibility to your claim. Finally, prepare a short timeline that shows when your account was secure, when the theft happened, and what steps you took afterward.

9. How do I write the arbitration demand?

Your arbitration demand doesn’t need to be written like a legal brief. You’ll need to complete the AAA Consumer Arbitration Demand Form online and submit it through www.adr.org.

A clear, factual statement works best. Include who the parties are, what happened, how much was stolen, and what you’re asking for.

Engaging experienced legal counsel can help you structure a strong, well-supported claim and anticipate the exchange’s defenses. A well-organized demand makes the arbitrator’s job easier — and that often works in your favor.

10. Can I join a class action instead of arbitration?

No. The Terms include a class-action waiver—you must bring your claim individually in arbitration.

11. Do I need a lawyer?

Not required, but Binance.US will have counsel. Having a lawyer on your side can help ensure your Notice of Dispute is valid, your AAA demand is airtight, and your evidence is properly organized and presented.

A skilled legal team can also help you minimize your costs, navigate procedural deadlines, and negotiate a stronger settlement if one is offered.

Contact Us

If your crypto was stolen from Binance.US and you’re ready to take action, we can help you file your claim, prepare your evidence, and navigate the arbitration process.

With over six years of experience and a record of handling more than 100 consumer arbitration cases, our firm has pursued claims against major cryptocurrency exchanges as well as leading phone carriers such as Verizon, T-Mobile, and AT&T.

Our attorneys are experienced in navigating proceedings before AAA, JAMS, and NAM, and understand the procedural and strategic nuances that can make or break a case. We also represent victims whose assets were stolen not only from regulated exchanges but also from self-custody wallets like MetaMask and other decentralized platforms.

Reach out to us today to discuss your case and legal options: (212) 457-9797 | info@dilendorf.com.

Attorney Advertising. Prior results do not guarantee a similar outcome. This information is provided for educational purposes and is not legal advice.

 

Key Takeaways:

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• U.S. courts may challenge the effectiveness of offshore trusts, potentially leading to legal and tax complications.

• Dilendorf Law Firm offers proven solutions—including revocable living trusts, Family Limited Partnerships, and insured custody—for effective crypto asset protection.

Considerations with Cook Islands Trusts for Crypto Investors

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Major legal cases, such as FTC v. Affordable Media and In re Mortensen, demonstrate situations where U.S. judges have ordered the repatriation of assets held in Cook Islands Trusts and may even compel trust creators to comply. Bankruptcy clawback rules can also allow the undoing of asset transfers up to 10 years later.

Transferring appreciated digital assets into offshore trusts may result in unexpected tax consequences and expose investors to strict IRS reporting and compliance duties. Non-compliance can lead to substantial penalties.

 

Proven Alternatives for Crypto Asset Protection

Dilendorf Law Firm has successfully handled over 100 crypto arbitration cases, recovering millions for clients—including senior citizens—against major U.S. exchanges. We focus on legal strategies for protecting digital assets, including:

• Revocable Living Trusts for Crypto
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• Family Limited Partnerships
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• Domestic Asset Protection Trusts
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• Insured Crypto Custody
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Frequently Asked Questions

Are Cook Islands Trusts suitable for crypto asset protection?
U.S. residents considering these trusts should weigh all legal, tax, and compliance factors and explore other options.

What is the best trust for digital assets?
Domestic trusts, such as revocable living trusts and state DAPTs, can offer safe and effective protection for crypto assets.

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If you are a founder, investor, or family seeking attorneys who specialize in crypto asset protection, our firm brings deep legal expertise and a proven track record to help clients secure and preserve digital wealth.

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Email: info@dilendorf.com

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