Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00803
Chinese OTC trading desks continued to face intensifying enforcement in February 2020.
ConstrainedCase description
Chinese OTC trading desks continued to face intensifying enforcement in February 2020. Bank accounts used for Bitcoin settlement were being frozen routinely under a program targeting 'black money' flowing through crypto channels. Chinese Bitcoin holders who had maintained offshore exchange accounts began shifting to more privacy-preserving options as even overseas platforms increased scrutiny of Chinese users.
Custody context
| Stress condition | Forced relocation |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2020 |
| 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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