Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00126
Platform bankruptcy — exchange custody (2014)
BlockedCase description
When Moolah declared bankruptcy and MintPal went offline in October 2014, no customer account statements, no reserve disclosures, and no formal claims process were provided. Users could not determine their individual balances. The only evidence of the theft came from blockchain analysis showing the stolen BTC being sold by Kennedy under a pseudonym on LocalBitcoins.
Custody context
| Stress condition | Documentation absent |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2014 |
| Country | United Kingdom |
Structural dependencies observed
What this illustrates
Nobody had written down how to get back in. That knowledge existed only in the owner's head. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
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.
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