Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01028
Institutional lockout — Celsius (2022)
ConstrainedCase description
Throughout the June 2022 crypto market crash—triggered by the Terra collapse and tightening monetary policy—multiple centralized lending platforms simultaneously invoked emergency clauses to pause customer withdrawals. Celsius, Babel Finance, and CoinFLEX all froze withdrawals within the same two-week period. Users across platforms discovered that withdrawal terms they had accepted were conditional, and that adverse market conditions—precisely when they most needed access—were grounds for suspension.
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.
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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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