Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00025
Institutional lockout — exchange custody (2013)
BlockedCase description
The SEC issued subpoenas to Bitfunder and other Bitcoin securities platforms in October 2013, demanding information on US users who had traded unregistered securities. The subpoenas caused Bitfunder to immediately lock US user accounts. Affected users could not withdraw their BTC balances while the SEC investigation was ongoing.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2013 |
| Country | United States |
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
News article
Related cases involving vendor lockout
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.