Part of the CustodyStress archive of observed Bitcoin custody incidents
Physical coercion
Cases in this category involve custody arrangements that came under physical or behavioral coercion. Outcomes depend on whether structural protections — geographic key separation, multisig thresholds, or time-delay mechanisms — existed.
Coercion cases reveal a structural tension between custody security and custody survivability under threat. Setups that protect against unauthorized access — passphrases held in memory, keys distributed geographically — can also protect an attacker from being forced to act. Cases where coercion was resisted structurally involve multisig thresholds that cannot be met from a single location, or keys distributed across jurisdictions beyond immediate physical reach.
105 observed cases
Blocked
63 (60%)
Constrained
38 (36%)
Survives
1 (1%)
Indeterminate
3 (3%)
Physical coercion — exchange custody (2014)
Exchange custody
A documented 2014 case involved a Bitcoin investor whose business partner threatened to expose alleged illegal activity unless the investor transferred their ex
As Bitcoin price rose through 2013, the frequency of such incidents increased.
Exchange custody
Multiple documented 2013 LocalBitcoins in-person trade incidents involved armed robbery of Bitcoin sellers. Buyers arranged face-to-face trades and physically c
Physical coercion — exchange custody (2013)
Exchange custody
As Bitcoin prices rose through early 2013, documented cases of Bitcoin holders being physically coerced into transferring funds increased. A forum-reported 2013
The attacker threatened to reveal personal information unless the user sent Bitcoin
Mobile or software wallet
In November 2013 as Bitcoin crossed $1,000, a reported forum case described a user who disclosed their Bitcoin holdings publicly on social media and was subsequ
All accessible BTC was transferred by the attacker before police arrived.
Mobile or software wallet
The December 2013 Bitcoin price peak above $1,200 triggered reported home invasion robberies targeting known Bitcoin holders. In at least one documented forum c
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