Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01120
Sanctions lockout — Coinbase (2023)
BlockedCase description
Russian residents whose Bitcoin was held on Western exchanges continued to be blocked in 2023 following the February 2022 sanctions. Kraken, Coinbase, and Binance had all restricted Russian account access to varying degrees. In 2023, additional exchanges implemented enhanced restrictions in response to OFAC guidance updates. Russian holders who had not previously moved funds to self-custody or non-Western exchanges before the 2022 restrictions found their access blocked indefinitely with no clear resolution path under existing sanctions frameworks.
Custody context
| Stress condition | Forced relocation |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | Russia |
Structural dependencies observed
What this illustrates
Before anyone could access the funds, a legal process had to be completed first. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
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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