Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01151
However, actual distributions did not begin until January 2024, when the plan became
ConstrainedCase description
On 9 November 2023, Bankruptcy Judge Martin Glenn confirmed Celsius's Chapter 11 reorganization plan. The confirmation—18 months after the initial withdrawal freeze—authorized the distribution of over $3 billion in Bitcoin, Ethereum, and fiat to creditors. However, actual distributions did not begin until January 2024, when the plan became effective. Creditors who had been blocked from their Bitcoin since June 2022 faced a total wait of approximately 19 months before funds began flowing back.
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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