CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00931

Institutional lockout — exchange custody (2021)

Indeterminate
Case description
On 24 September 2021 China's People's Bank of China issued a comprehensive ban on all cryptocurrency transactions, declaring all crypto-related business activities illegal. All Chinese exchanges that had been operating in a grey zone via VPNs were required to close. Chinese nationals on foreign exchanges were required to close their accounts. The order affected millions of users.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeIndeterminate
DocumentationUnknown
Year observed2021
CountryChina
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. It's not clear whether anyone ever regained access.
Outcome interpretation
Not enough information is available to determine the outcome.
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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