CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00543

OTC broker coerced by organised crime — exchange (2018)

Blocked
Case description
A September 2018 incident describes a cryptocurrency OTC broker coerced by organised criminals who threatened violence against their family if they did not transfer client BTC in their custody. The broker transferred 12 BTC before reporting to police. The clients whose BTC was transferred had no legal recourse against the broker who had been acting under duress.
Custody context
Stress conditionPhysical coercion
Custody systemExchange custody
OutcomeBlocked
DocumentationUnknown
Year observed2018
CountryUnknown
Structural dependencies observed
Single point of failure
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
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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