Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00306
Documentation absent — exchange 2016
IndeterminateCase description
A Bitcoin trading cooperative that had pooled members' funds since 2014 was wound down in October 2016 following a membership dispute. The cooperative had never maintained segregated accounts—all member funds were pooled in a single wallet. On dissolution, the operator divided the pool by self-reported member balances that could not be independently verified.
Custody context
| Stress condition | Documentation absent |
| Custody system | Exchange custody |
| Outcome | Indeterminate |
| Documentation | Unknown |
| Year observed | 2016 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
There was no documentation of how access worked. Without it, there was no path back in. It's not clear whether anyone ever regained access.
Outcome interpretation
Not enough information is available to determine the outcome.
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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