Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01174
Platform bankruptcy — FTX (2023)
ConstrainedCase description
BlockFi's bankruptcy estate spent much of 2023 in complex negotiations with the FTX bankruptcy estate, which owed BlockFi approximately $355 million and against which BlockFi also held substantial counterclaims. The interlinked bankruptcies—FTX and BlockFi both in Chapter 11 simultaneously—meant each estate's distributions depended partly on resolving claims against the other. BlockFi customers remained blocked from their Bitcoin while the two bankruptcy estates litigated their mutual claims.
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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