Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01078
Genesis eventually filed for bankruptcy in January 2023.
ConstrainedCase description
On 16 November 2022, Genesis Global Capital suspended customer withdrawals, citing its $175 million locked in FTX and abnormal withdrawal requests following FTX's collapse. Genesis had approximately $2.8 billion in active loans outstanding. The suspension immediately froze the Gemini Earn program, through which approximately 350,000 retail investors had deposited assets via Gemini in exchange for yield. Genesis eventually filed for bankruptcy in January 2023.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | United States |
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.