Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01132
Platform bankruptcy — exchange custody (2023)
SurvivesCase description
Bittrex's August 2023 deadline for customers to claim assets through the bankruptcy process required all claimants to complete KYC verification—including providing current address, date of birth, Social Security or EIN number, and a government-issued ID. Of approximately 1.6 million identified customers, only 35,972 (less than 3%) actually submitted claims by the deadline. The low engagement reflected that 77% of remaining balances were under $100, and many customers judged the KYC burden not worth the recovery amount. Unclaimed funds went toward regulatory fines.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | United States |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
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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