The Custodian

Modus operandi

Marketed "institutional-grade cold custody" and insurance that did not exist. Secretly rehypothecated client deposits to fund a sister trading desk that blew up. Covered the hole with new deposits until a bank-run forced disclosure.

Evidence collected

• 1Client assets commingled with a prop desk; "insurance" policy was never bound.
• 2Internal ledger and on-chain balances diverged by $268M.
• 3$31M clawed back from a correspondent bank before transfer cleared.
• 4Executive sold a yacht and two properties days before collapse.

Crime timeline

1. 2021Vaulteon launches

   "Regulated, insured, audited." None verifiable.

2. 2022Rehypothecation

   Client BTC quietly lent to sister desk.

3. 2023Desk blows up−$268,000,000

   A bad leveraged bet erases the buffer.

4. 2024-03Bank run+$31,000,000 recovered

   Withdrawals halted; $31M frozen in transit.

Known associates