Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00344
A cloud mining operator dissolved in July 2016 after four years of operation.
BlockedCase description
A cloud mining operator dissolved in July 2016 after four years of operation. It had never published verifiable proof that it owned the mining hardware it claimed to operate on customers' behalf. A post-dissolution review found that the operator had been purchasing BTC from exchanges to simulate mining payouts. Customer 'mined' BTC had actually been purchased and was exhausted.
Custody context
| Stress condition | Documentation absent |
| Custody system | Unknown custody system |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2016 |
| Country | Unknown |
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
Forum post
Evidence link
Related cases involving documentation absent
193 cases involve documentation absent
20 cases involve unknown custody system
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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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