CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00621

Gox trustee Nobuaki Kobayashi revealed in September 2018 that he had sold approximately

Constrained
Case description
Mt. Gox trustee Nobuaki Kobayashi revealed in September 2018 that he had sold approximately $400 million worth of BTC and BCH from the estate between December 2017 and February 2018 to fund legal proceedings. Creditors who had expected to receive BTC distributions were told the trustee had converted their assets to JPY without their consent. The trustee's unilateral selling at sub-optimal prices caused significant creditor losses.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeConstrained
DocumentationUnknown
Year observed2018
CountryJapan
Structural dependencies observed
Legal process requiredInstitutional cooperation required
What this illustrates
Before anyone could access the funds, a legal process had to be completed first. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Publicly Reported
Evidence type
News article
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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