Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01096
Celsius filed for Chapter 11 bankruptcy on 13 July 2022.
ConstrainedCase description
On 12 June 2022 Celsius Network froze all withdrawals, swaps, and transfers for its approximately 1.7 million users without prior warning. The platform cited 'extreme market conditions.' Users who had deposited Bitcoin and other crypto into Celsius's Earn accounts found their funds completely inaccessible. Celsius filed for Chapter 11 bankruptcy on 13 July 2022. The bankruptcy court later ruled that Earn account assets legally belonged to Celsius's estate, not to individual customers.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | United States |
Structural dependencies observed
What this illustrates
Getting access back required help from an institution — and that help wasn't available. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Publicly Reported
Evidence type
News article
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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