Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00654
Owner incapacity — exchange custody (2019)
BlockedCase description
A Bitcoin trader was remanded in custody in March 2019 pending trial on unrelated charges. Their exchange account held leveraged positions requiring active management. The court did not grant emergency access to manage the account. All positions were auto-liquidated over a six-week period while the trader was in custody, resulting in substantial losses.
Custody context
| Stress condition | Owner incapacity |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2019 |
| 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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