Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01080
Bahamian regulators seized approximately $3.5 billion in assets from FTX Digital
ConstrainedCase description
International FTX customers—particularly those on FTX.com rather than the US-only FTX.US—found their accounts immediately frozen when FTX filed for bankruptcy. Different regulatory jurisdictions created overlapping and conflicting claims on the estate. Bahamian regulators seized approximately $3.5 billion in assets from FTX Digital Markets. International customers had no clear legal avenue to recover funds and faced years of cross-border bankruptcy proceedings.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | International |
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.
Submit a case
← All cases
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.
Translate