Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01079
On 10 November 2022, BlockFi paused client withdrawals as FTX contagion spread.
ConstrainedCase description
On 10 November 2022, BlockFi paused client withdrawals as FTX contagion spread. BlockFi had significant exposure to FTX, including a $400 million revolving credit facility that became worthless overnight. BlockFi filed for Chapter 11 bankruptcy on 28 November 2022, listing between $1 billion and $10 billion in liabilities and more than 100,000 creditors. Customers who held Bitcoin and crypto on the platform found all access suspended.
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.