Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00343
A long-term Bitfinex account holder died shortly after the August 2016 hack.
ConstrainedCase description
A long-term Bitfinex account holder died shortly after the August 2016 hack. Their estate found that the account had a 36% haircut applied and held BFX tokens. The executor had never heard of BFX tokens and did not understand the redemption mechanism. By the time the estate attorneys understood the situation and completed identity verification, BFX tokens had partially redeemed but at less than face value.
Custody context
| Stress condition | Owner death |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2016 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
There was only one way in. When that path was gone, so was access. 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 owner death
This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
Submit a case
← All cases
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.
Translate