CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01056

Several exchanges, including Coinbase and Kraken, received orders to freeze specific

Constrained
Case description
In February 2022, the Canadian government invoked the Emergencies Act to freeze bank accounts and financial assets—including cryptocurrency—of individuals associated with the 'Freedom Convoy' truckers' protest. Several exchanges, including Coinbase and Kraken, received orders to freeze specific accounts. Canadian crypto holders who found their exchange accounts frozen had no immediate legal remedy; appeals required engaging with the financial regulatory process. The Emergencies Act was revoked within weeks, but the episode demonstrated that state emergency powers could be applied to exchange-custodied Bitcoin.
Custody context
Stress conditionLegal or authority constraint
Custody systemExchange custody
OutcomeConstrained
DocumentationUnknown
Year observed2022
CountryCanada
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. 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
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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.