Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01157
The Celsius bankruptcy court approved creditor voting on a reorganization plan
ConstrainedCase description
In August 2023, the Celsius bankruptcy court approved creditor voting on a reorganization plan involving the sale of assets to the Fahrenheit consortium. Court filings estimated creditors could recover between 67% and 85% of their holdings under the plan—significantly better than a 47% recovery under liquidation. Creditors who had been locked out of their Bitcoin for over a year were offered a choice between a long bankruptcy process and a managed recovery with partial in-kind distributions.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2023 |
| 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.
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