Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00439
Physical coercion — exchange custody (2017)
BlockedCase description
An exchange employee was targeted in June 2017 by an attacker who gained leverage through compromising personal communications. The attacker demanded that the employee transfer BTC from the exchange's operational wallet to an attacker-controlled address. The employee complied with part of the demand before alerting compliance. The transferred amount was traced but not recovered.
Custody context
| Stress condition | Physical coercion |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2017 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
No backup path existed. One point of failure was all it took. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
Evidence link
Related cases involving physical coercion
This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
Submit a case
← All cases
Framework references
Where Bitcoin Custody Intersects Legal and Fiduciary Authority
Where custody creates gaps in estate planning, fiduciary duty, and professional responsibility.
Professional Scope Boundary Matrix
What each professional or product covers, what they do not, and where gaps form between them.
The Independent Assessment Layer in Bitcoin Custody
How independent diagnostic layers emerge when multiple parties depend on shared infrastructure.
Translate