Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00138
Documentation absent — exchange custody (2014)
BlockedCase description
A Bitcoin social trading network that allowed users to copy-trade expert accounts collapsed in May 2014 when the network's BTC reserve was found to be substantially less than the aggregate published balances. No reserve audit had ever been conducted. When the discrepancy was exposed the platform immediately froze all withdrawals.
Custody context
| Stress condition | Documentation absent |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2014 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
There was no documentation of how access worked. Without it, there was no path back in. 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 documentation absent
This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
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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.
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