Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00699
Bank accounts used for OTC Bitcoin settlement were frozen across dozens of banks.
ConstrainedCase description
Chinese authorities launched a targeted operation against offshore exchange accounts operated by Chinese nationals in June 2019. Bank accounts used for OTC Bitcoin settlement were frozen across dozens of banks. Chinese Bitcoin holders who had maintained offshore exchange accounts found those exchange accounts flagged and restricted by the platforms' compliance systems responding to unusual activity patterns.
Custody context
| Stress condition | Forced relocation |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2019 |
| Country | China |
Structural dependencies observed
What this illustrates
Before anyone could access the funds, a legal process had to be completed first. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Publicly Reported
Evidence type
News article
Evidence link
Related cases involving forced relocation
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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