Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01056
Several exchanges, including Coinbase and Kraken, received orders to freeze specific
ConstrainedCase 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 The Emergencies Act was revoked within weeks, but the episode demonstrated that state emergency powers could be applied to exchange-custodied Bitcoin.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 condition | Legal or authority constraint |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | Canada |
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
Related cases involving legal or authority constraint
39 cases involve legal or authority constraint
512 cases involve exchange custody
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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.