Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00612
Documentation absent — exchange custody (2018)
IndeterminateCase description
Italian courts later found that BitGrail's CEO Francesco Firano had been aware of the Nano theft since mid-2017 and had deliberately misrepresented the exchange's financial position. He had continued to accept new deposits and allow withdrawals after the insolvency event, meaning later depositors effectively subsidised earlier withdrawals. Customers had no basis to identify the insolvency before the announcement.
Custody context
| Stress condition | Documentation absent |
| Custody system | Exchange custody |
| Outcome | Indeterminate |
| Documentation | Unknown |
| Year observed | 2018 |
| Country | Italy |
Structural dependencies observed
What this illustrates
Nobody had written down how to get back in. That knowledge existed only in the owner's head. 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
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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