Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01065
On 11 November 2022, FTX and approximately 130 affiliated companies filed for Chapter
ConstrainedCase description
On 8 November 2022, FTX halted customer withdrawals after a liquidity crisis triggered by revelations about its balance sheet. On 11 November 2022, FTX and approximately 130 affiliated companies filed for Chapter 11 bankruptcy. More than one million customers lost access to their funds. An $8 billion shortfall was later identified. FTX founder Sam Bankman-Fried was arrested in December 2022 and subsequently convicted of fraud.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | Bahamas |
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
Evidence link
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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