Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00311
Owner incapacity — exchange custody (2016)
BlockedCase description
A Bitcoin trader was hospitalised for two months following a serious illness in March 2016. Their exchange account held open leveraged positions. Without 2FA-authenticated access the exchange would not allow family members to close the positions. The auto-liquidation system eventually closed the positions at a loss.
Custody context
| Stress condition | Owner incapacity |
| Custody system | Exchange custody |
| Outcome | Blocked |
| 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. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
Related cases involving owner incapacity
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.
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