Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01119
Platform bankruptcy — exchange custody (2023)
SurvivesCase description
On 8 May 2023, Bittrex filed for Chapter 11 bankruptcy in Delaware after the SEC sued the exchange in April for operating an unregistered securities exchange. Unlike most 2022 exchange collapses, Bittrex was solvent—it held 100% of customer assets and pledged to return all funds in-kind. However, the bankruptcy process still created a temporary access block: customers who had not withdrawn before the filing needed to navigate the formal claims process to retrieve their Bitcoin and other holdings.
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.