Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00900
Documentation absent — exchange custody (2021)
IndeterminateCase description
A DeFi yield aggregator that had accumulated over $200 million in Bitcoin-backed collateral was found in June 2021 to have published exaggerated reserve figures. An independent audit found actual reserves were 60% of stated amounts. The 40% shortfall had been concealed using off-chain accounting entries that did not correspond to any on-chain activity.
Custody context
| Stress condition | Documentation absent |
| Custody system | Exchange custody |
| Outcome | Indeterminate |
| Documentation | Unknown |
| Year observed | 2021 |
| 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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