Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01182
Legal authority constraint — FTX (2023)
IndeterminateCase description
On 2 November 2023, Sam Bankman-Fried was convicted on all seven counts of fraud and conspiracy in a New York federal court. The conviction—while vindicating creditors—did not immediately unlock their funds. The FTX estate continued to operate under Chapter 11 proceedings managed by John Ray III, with distributions not yet commenced. Creditors who had waited a year since the November 2022 collapse remained blocked while the legal framework for distributions was established.
Custody context
| Stress condition | Legal or authority constraint |
| Custody system | Exchange custody |
| Outcome | Indeterminate |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | United States |
Structural dependencies observed
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
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.
Translate