CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01032

Institutional lockout — FTX (2022)

Indeterminate
Case description
Crypto lender Salt Lending suspended withdrawals in December 2022 citing FTX exposure and difficult market conditions. Borrowers who had posted Bitcoin as collateral for loans found they could not retrieve their collateral even after repaying their loans, as the suspension applied to all outbound transfers. The case illustrated a specific custody stress in collateralized lending: the lender's insolvency trapped borrower-owned collateral in the estate.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeIndeterminate
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. It's not clear whether anyone ever regained access.
Outcome interpretation
Not enough information is available to determine the outcome.
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.