Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01170
Institutional lockout — exchange custody (2023)
BlockedCase description
JPEX, a Hong Kong-based crypto exchange, began showing signs of stress in mid-2023, ultimately blocking customer withdrawals in September 2023. The exchange, heavily promoted by local influencers, had attracted retail customers with promises of high returns. When regulators from the Hong Kong Securities and Futures Commission warned that JPEX had not been licensed, a bank run ensued that the exchange could not meet. Estimated customer losses exceeded HK$1 billion. The JPEX case was notable for its targeting of Hong Kong retail investors specifically through social media influencer marketing.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | Hong Kong |
Structural dependencies observed
What this illustrates
Getting access back required help from an institution — and that help wasn't available. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
News article
Evidence link
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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