Part of the CustodyStress archive of observed Bitcoin custody incidents
Forced relocation
Cases in this category involve custody arrangements that depended on physical access to a specific location or jurisdiction which the owner was forced to leave.
Forced relocation cases expose geographic dependencies that are invisible during normal operation. Most custody setups implicitly assume the owner retains physical access to their home country, devices, and stored materials. Cases in this category involve deportation, border detention, conflict displacement, and emergency evacuation — situations where that assumption fails abruptly.
91 observed cases
Blocked
15 (16%)
Constrained
49 (54%)
Survives
18 (20%)
Indeterminate
9 (10%)
Turkey banned cryptocurrency payments in April 2021.
Exchange custody
Turkey banned cryptocurrency payments in April 2021. Two major Turkish exchanges — Thodex and Vebitcoin — collapsed within days of the announcement, with Thodex
Mining ban, thousands of Chinese Bitcoin miners were forced to physically relocate
Mobile or software wallet
Following the May 2021 mining ban, thousands of Chinese Bitcoin miners were forced to physically relocate their equipment to Kazakhstan, the United States, Russ
Forced relocation — software wallet (2021)
Mobile or software wallet
Following China's June 2021 comprehensive Bitcoin ban, Chinese Bitcoin holders who had kept BTC on Chinese exchanges were required to close their accounts. Exch
Forced relocation — software wallet (2021)
Mobile or software wallet
Iran's government ordered licensed Bitcoin mining operations to shut down temporarily in August 2021 to address electricity shortages during peak summer demand.
Sanctions lockout — exchange custody (2021)
Exchange custody
Following the Taliban takeover of Afghanistan in August 2021, Afghan Bitcoin holders found international exchanges immediately geofencing Afghan IP addresses du
Nigeria's CBN in 2021 continued its pressure on cryptocurrency exchanges.
Exchange custody
Nigeria's CBN in 2021 continued its pressure on cryptocurrency exchanges. Flutterwave and other payment processors suspended crypto-related transactions in Octo
Forced relocation — exchange custody (2021)
Exchange custody
Russia's central bank published a report in October 2021 recommending a complete ban on cryptocurrency operations. While the ban was not implemented until 2022,
Chinese OTC trading desks continued to face intensifying enforcement in February 2020.
Exchange custody
Chinese OTC trading desks continued to face intensifying enforcement in February 2020. Bank accounts used for Bitcoin settlement were being frozen routinely und
Forced relocation — exchange custody (2020)
Exchange custody
US OFAC added new designations related to Iranian cryptocurrency activities in June 2020. Any exchange with US nexus that had Iranian customers terminated those
US sanctions on Venezuela tightened further in June 2020.
Mobile or software wallet
US sanctions on Venezuela tightened further in June 2020. Venezuelan Bitcoin holders who had maintained international exchange accounts found their accounts sus
The Lebanese pound lost 80% of its value.
Exchange custody
Lebanon's financial crisis reached a critical point in August 2020 following the Beirut port explosion. The Lebanese pound lost 80% of its value. Lebanese Bitco
Account frozen — exchange custody (2020)
Exchange custody
Following disputed presidential elections in Belarus in August 2020 and subsequent protests, Belarusian authorities began freezing bank accounts of individuals
Forced relocation — exchange custody (2020)
Exchange custody
Despite the Supreme Court lifting the RBI ban in March 2020, Indian Bitcoin users continued to face banking difficulties throughout 2020. Several large banks re
Forced relocation — exchange custody (2020)
Exchange custody
Nigeria's CBN issued revised guidelines in November 2020 further restricting cryptocurrency transactions through commercial banks. Exchange accounts linked to N
Turkey's lira came under pressure in April 2020 as COVID impacted its economy.
Exchange custody
Turkey's lira came under pressure in April 2020 as COVID impacted its economy. Bitcoin demand surged as a hedge. Turkish exchanges experienced massive withdrawa
Forced relocation — exchange custody (2019)
Exchange custody
During the prolonged Supreme Court challenge to the RBI ban in early 2019, Indian Bitcoin users continued to face an inaccessible banking system. Exchange custo
Algeria formally banned cryptocurrency transactions in March 2019 under its Finance Law.
Exchange custody
Algeria formally banned cryptocurrency transactions in March 2019 under its Finance Law. Algerian Bitcoin holders who had maintained accounts on foreign exchang
Forced relocation — exchange custody (2019)
Exchange custody
Following Central Bank of Nigeria directives in April 2019 discouraging banks from servicing cryptocurrency businesses, Nigerian exchanges faced renewed banking
Bank accounts used for OTC Bitcoin settlement were frozen across dozens of banks.
Exchange custody
Chinese authorities launched a targeted operation against offshore exchange accounts operated by Chinese nationals in June 2019. Bank accounts used for OTC Bitc
Sanctions lockout — software wallet (2019)
Mobile or software wallet
Venezuelan Bitcoin holders in July 2019 faced compounding access difficulties: US sanctions on Venezuela's government extended to financial transactions, making
Forced relocation — software wallet (2019)
Mobile or software wallet
Ecuador's central bank issued guidance in August 2019 reiterating that Bitcoin was not legal tender and could not be used in commercial transactions. Ecuadorian
Iran's ongoing US sanctions situation intensified in September 2019.
Exchange custody
Iran's ongoing US sanctions situation intensified in September 2019. Virtually all international exchanges had geofenced Iranian users. Iranian Bitcoin holders
Their account was suspended pending KYC completion.
Exchange custody
A Bitcoin user in Libya who had maintained BTC on a foreign exchange found in October 2019 that escalating conflict had made it impossible to complete the ident
Forced relocation — software wallet (2019)
Mobile or software wallet
Following the Hong Kong protests that began in June 2019, some Hong Kong residents with Bitcoin on local exchanges began relocating assets offshore as political
Turkey's lira suffered a severe currency crisis in August-September 2018.
Mobile or software wallet
Turkey's lira suffered a severe currency crisis in August-September 2018. Bitcoin demand surged as Turks sought inflation hedges. Turkish exchanges experienced
Translate