CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01026

Platform bankruptcy — Celsius (2022)

Blocked
Case description
Celsius customers outside the United States faced additional barriers to participating in the US bankruptcy process in 2022. Filing a proof of claim in a US Chapter 11 case required navigating US federal court procedures, potentially through US counsel, from a foreign country. Many international customers with small balances calculated that the cost of legal participation would exceed any recovery. The bankruptcy process—designed for US creditors—was effectively inaccessible to a significant portion of Celsius's international user base.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeBlocked
DocumentationUnknown
Year observed2022
CountryInternational
Structural dependencies observed
Institutional cooperation required
What this illustrates
Getting access back required help from an institution — and that help wasn't available. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
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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