Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00516
Platform bankruptcy — exchange custody (2018)
BlockedCase description
Italian police confiscated all of BitGrail's remaining cryptocurrency assets in March 2018 as part of a criminal investigation into Firano. The confiscation order prevented any distributions to creditors while the investigation was active. Customers filed claims but the confiscated assets represented only a fraction of the total owed. Firano was later charged with computer fraud, fictitious bankruptcy, and money laundering.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2018 |
| Country | Italy |
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.
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