Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00548
Owner incapacity — exchange custody (2018)
BlockedCase description
A cryptocurrency day trader was arrested on unrelated charges in March 2018 and held for 45 days before bail was granted. During that period their exchange account had open leveraged positions that were liquidated due to margin calls they could not respond to. A designated account manager had not been arranged. The liquidation occurred during a volatile period.
Custody context
| Stress condition | Owner incapacity |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2018 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
Before anyone could access the funds, a legal process had to be completed first. 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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