Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01164
Legal authority constraint — Coinbase (2023)
ConstrainedCase description
The SEC's June 2023 lawsuits against Coinbase and Binance triggered significant uncertainty about the regulatory status of multiple cryptocurrencies, with the SEC listing dozens of tokens as unregistered securities in its complaints. Several exchanges preemptively delisted or restricted trading of named tokens. Users who held those tokens on affected exchanges found they could not sell or withdraw, pending exchange compliance decisions. The access constraint was regulatory rather than insolvency-driven, and affected users with no compliance history.
Custody context
| Stress condition | Legal or authority constraint |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | United States |
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
Evidence link
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.