Platform bankruptcy — FTX (2022)

Indeterminate

Case description

The SEC and CFTC both claimed jurisdiction over FTX assets following the November 2022 bankruptcy, creating regulatory overlap that complicated and delayed the estate distribution process. The bankruptcy trustee, John Ray III, simultaneously had to manage claims from regulators in the US, Bahamas, Japan, and the EU. Customers in different jurisdictions had different legal standings and recovery timelines based on where they had opened their FTX accounts and which regulatory body claimed priority over assets in that region.

Custody context

Stress condition	Legal or authority constraint
Custody system	Exchange custody
Outcome	Indeterminate
Documentation	Unknown
Year observed	2022
Country	United States

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

Evidence link

https://en.wikipedia.org/wiki/Bankruptcy_of_FTX

Related cases involving legal or authority constraint

39 cases involve legal or authority constraint 512 cases involve exchange custody View archive statistics →

This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents. Submit a case

← All cases

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.