Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01036
Account frozen — exchange custody (2022)
ConstrainedCase description
The Terra/LUNA collapse in May 2022 prompted multiple South Korean exchanges including Upbit and Bithumb to temporarily suspend LUNA and UST trading and withdrawals as the price collapsed. South Korean retail investors had been disproportionately invested in the Terra ecosystem due to LUNA co-founder Do Kwon's nationality and local marketing. Investors who attempted to sell or withdraw during the suspension window—when price discovery was most critical—found their accounts frozen at precisely the moment they most needed access.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | South Korea |
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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