Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01154
Over 2,000 complaints were filed with Hong Kong police.
BlockedCase description
The September 2023 JPEX collapse in Hong Kong saw an estimated HK$1.4 billion (approximately $180 million USD) frozen when the exchange suspended withdrawals. The Hong Kong Securities and Futures Commission had warned the previous week that JPEX lacked a licence, triggering a bank run the platform could not meet. Over 2,000 complaints were filed with Hong Kong police. The JPEX case was unique for 2023 in that it followed a high-profile influencer marketing campaign—victims had been drawn to the platform specifically through celebrity promotions and had no reason to suspect the exchange's unlicensed status.
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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