CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01004

Platform bankruptcy — Celsius (2022)

Constrained
Case description
The full scale of 2022 crypto lending insolvencies became clear by December when bankruptcy estates for Celsius, Voyager, BlockFi, and Genesis were all simultaneously active. Attorneys involved in all four cases noted the common pattern: terms of service that transferred asset ownership to the lender, a retail customer base unaware of this legal structure, and bankruptcy proceedings that treated customers as unsecured creditors rather than bailors. The aggregate amount of Bitcoin locked across all four estates represented one of the largest simultaneous custody stress events in the asset's history.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeConstrained
DocumentationUnknown
Year observed2022
CountryUnited States
Structural dependencies observed
Institutional cooperation required
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
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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.