Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00095
Silk Road 2.0's escrow was entirely centralised with no on-chain multisig.
ConstrainedCase description
Silk Road 2.0's escrow was entirely centralised with no on-chain multisig. The February 2014 hack exploited this architecture. Users had no way to independently verify their pre-hack escrow balances because no public address for each order's escrow was published. Victims had to rely solely on SR2's internal records, many of which were disputed.
Custody context
| Stress condition | Documentation absent |
| Custody system | Exchange custody |
| Outcome | Constrained |
| 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. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Publicly Reported
Evidence type
News article
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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