CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01216

Sanctions lockout — exchange custody (2024)

Blocked
Case description
Russian nationals remained completely blocked from all major Western exchange platforms through 2024 under OFAC and EU sanctions. Despite the legal complexity of their situation, some Russian Bitcoin holders attempted to access funds through intermediaries or non-sanctioned jurisdictions, but these attempts were often frustrated by secondary sanctions risk that caused even non-Western exchanges to refuse service. The situation created a bifurcated outcome: Russians with self-custody wallets established before sanctions could transact freely on-chain, while Russians who had trusted exchange custody had no viable legal path to access their funds.
Custody context
Stress conditionForced relocation
Custody systemExchange custody
OutcomeBlocked
DocumentationUnknown
Year observed2024
CountryRussia
Structural dependencies observed
Legal process requiredInstitutional cooperation required
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
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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