Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01020
After withdrawals were frozen, it emerged that the company had lost approximately $190
BlockedCase description
Hodlnaut had hidden its exposure to TerraUSD from customers and regulators. After withdrawals were frozen, it emerged that the company had lost approximately $190 million in the Terra/UST collapse in May 2022, but had continued to solicit customer deposits throughout June and July 2022 without disclosing this. Singapore police opened a criminal investigation for cheating and fraud. Customers who deposited in June and July 2022 had done so under materially false information.
Custody context
| Stress condition | Documentation absent |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | Singapore |
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.
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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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