Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00855
The QuadrigaCX CCAA proceedings entered their second year in January 2020.
BlockedCase description
The QuadrigaCX CCAA proceedings entered their second year in January 2020. E&Y filed its fifth monitor's report confirming that Gerald Cotten had used customer funds on at least four other exchanges under pseudonymous accounts. The 76,000 creditors continued to have no access to their funds. The total verified creditor claims reached CAD $214.6 million against estimated recoverable assets of only CAD $46 million.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2020 |
| Country | Canada |
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
Evidence link
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.