Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00996
Institutional lockout — exchange custody (2022)
ConstrainedCase description
The collapse of the Terra/LUNA ecosystem in May 2022 caused cascading custody failures across multiple platforms. Exchanges that had listed LUNA froze trading and withdrawals at various points during the depeg event as the token's value fell 99.9% in days. Users who held LUNA or UST in exchange custody accounts could not sell or withdraw during the most critical period. The collapse directly triggered the insolvency of Celsius, Voyager, Three Arrows Capital, and Hodlnaut.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | South Korea |
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.