Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00634
Bitfinex and Tether were sued by the New York Attorney General in April 2019.
SurvivesCase description
Bitfinex and Tether were sued by the New York Attorney General in April 2019. The NYAG alleged that Tether had backstopped Bitfinex's $850 million hole using Tether reserves. The lawsuit included a restraining order preventing Bitfinex from accessing certain funds. US customers of Bitfinex faced uncertainty about the platform's future and some found their accounts under enhanced review.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2019 |
| Country | United States |
Structural dependencies observed
Outcome interpretation
Access remained 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.
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