Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00764
During this period, open leveraged positions on their exchange account were
BlockedCase description
A Bitcoin trader hospitalised with severe COVID-19 in March 2020 was placed in an induced coma for three weeks. During this period, open leveraged positions on their exchange account were auto-liquidated during the March 2020 crash that saw BTC fall from $9,000 to $4,000. No third-party access had been arranged. The liquidation cost the trader their entire exchange balance.
Custody context
| Stress condition | Owner incapacity |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2020 |
| 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
News article
Evidence link
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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