Part of the CustodyStress archive of observed Bitcoin custody incidents
Exchange custody
Cases in this category involve Bitcoin held on exchanges or custodial platforms. The user does not control private keys — access depends on the platform remaining operational and the account remaining accessible.
Exchange custody cases cluster around platform insolvency, account access loss, and regulatory action. Unlike self-custody failures, exchange cases often involve a recoverable path — but one that runs through legal or institutional processes that can take months or years.
512 observed cases
Blocked
135 (26%)
Constrained
181 (35%)
Survives
128 (25%)
Indeterminate
68 (13%)
Institutional lockout — Cryptsy (2016)
Exchange custody
The Cryptsy receiver's investigation in early 2016 revealed that CEO Paul Vernon had allegedly moved approximately 11,000 BTC of customer funds to his personal
Documentation absent — exchange custody (2016)
Exchange custody
A group of investors in a Bitcoin-denominated commodity fund discovered in March 2016 that the fund had never registered with any financial authority and had no
Although the law was not enacted, several Russian exchanges pre-emptively suspended
Exchange custody
Russia's Ministry of Finance circulated a draft law in March 2016 that would criminalise Bitcoin transactions. Although the law was not enacted, several Russian
Physical coercion — exchange 2016
Exchange custody
A Bitcoin exchange account holder was targeted by an attacker who used stolen personal data to pass the exchange's identity verification and gain access to the
Documentation absent — exchange 2016
Exchange custody
Nucleus had claimed to implement multi-signature escrow but post-closure analysis by blockchain researchers found no evidence the advertised multisig had ever b
The report showed the fund's BTC holdings but provided no information on how gains were
Exchange custody
A Bitcoin tokenised fund that had been operating since 2014 published its first—and only—NAV report in May 2016. The report showed the fund's BTC holdings but p
Documentation absent — exchange 2016
Exchange custody
A Bitcoin investment fund that had raised BTC from retail investors in 2014 refused to publish audited accounts in 2016, instead providing only a PDF with no ve
Forced relocation — exchange custody (2016)
Exchange custody
Nigerian authorities imposed foreign exchange restrictions in June 2016 that prevented Nigerian bank accounts from making international wire transfers. Nigerian
Physical coercion — exchange 2016
Exchange custody
A forum post from July 2016 documents a case where a Bitcoin trader's exchange account was compromised by a hacker who then contacted the trader demanding a ran
A long-term Bitfinex account holder died shortly after the August 2016 hack.
Exchange custody
A long-term Bitfinex account holder died shortly after the August 2016 hack. Their estate found that the account had a 36% haircut applied and held BFX tokens.
Documentation absent — Bitfinex (2016)
Exchange custody
Following the Bitfinex hack, several other exchanges published claims of proof-of-reserves but without specifying methodology or providing cryptographic proofs.
Documentation absent — exchange custody (2016)
Exchange custody
A Bitcoin high-yield investment program that had been paying daily returns for 18 months collapsed in August 2016. Investors who requested their principal back
Venezuelan hyperinflation in mid-2016 drove citizens to Bitcoin as a store of value.
Exchange custody
Venezuelan hyperinflation in mid-2016 drove citizens to Bitcoin as a store of value. Several Venezuelans who held BTC on international exchanges found that thei
Owner death — Bitfinex (2016)
Exchange custody
A Bitfinex account holder who had experienced the August 2016 hack died before completing the BFX token redemption process. Their estate was unaware of the toke
The attacker demanded 2 BTC or threatened to forward the communications to the trader's
Exchange custody
A 2016 documented case describes a Bitcoin trader who was blackmailed by an individual who claimed to have accessed private communications. The attacker demande
The exchange implemented mandatory country-of-residence disclosure as part of FATF
Exchange custody
A Bitcoin holder living in a country that had criminalised Bitcoin transactions in 2015 held their BTC on a foreign exchange. In September 2016 the exchange imp
Institutional lockout — Bitfinex (2016)
Exchange custody
Following Bitfinex's August 2016 hack, the US government opened investigations into whether the BFX token structure constituted an unregistered securities offer
A Cryptsy creditor who had a pending bankruptcy claim died in September 2016.
Exchange custody
A Cryptsy creditor who had a pending bankruptcy claim died in September 2016. The estate was unaware that the claim existed or that there was a strict deadline
Documentation absent — exchange 2016
Exchange custody
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
Forced relocation — exchange custody (2016)
Exchange custody
Following the Brexit referendum announcement in February 2016, several EU-based Bitcoin exchanges restricted UK account services in anticipation of regulatory u
Institutional lockout — exchange custody (2016)
Exchange custody
The US Treasury's FinCEN published updated guidance in February 2016 explicitly classifying Bitcoin mixers as money service businesses. Several privacy-focused
Owner incapacity — exchange custody (2016)
Exchange custody
A Bitcoin trader was hospitalised for two months following a serious illness in March 2016. Their exchange account held open leveraged positions. Without 2FA-au
Documentation absent — Gatecoin (2016)
Exchange custody
Gatecoin's public statement on the May 2016 hack did not specify the technical attack vector. The exchange cited an 'operational error' that caused hot wallet f
Multisig quorum failure — 2-of-3 multisig (2016)
Exchange custody
A venture capital fund that stored its Bitcoin portfolio in a 2-of-3 multisig lost one key when a general partner's laptop was seized by authorities during an u
Forced relocation — exchange custody (2016)
Exchange custody
A Syrian refugee who had stored Bitcoin as portable wealth was granted asylum in a European country in October 2016. The exchange they used for their primary ho
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