Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01285
A creditor who deposited 1 BTC in October 2022—when Bitcoin was worth approximately
ConstrainedCase description
Many FTX creditors who expected to receive 119% of their November 2022 claim values in cash described a practical access problem: their claim was denominated in dollars at the 2022 petition date, but they had originally deposited Bitcoin. A creditor who deposited 1 BTC in October 2022—when Bitcoin was worth approximately $19,000—would receive a claim payment of approximately $22,600 (119% of $19,000) in cash. But Bitcoin in November 2024 was trading above $90,000. These creditors had effectively lost 75% of their Bitcoin's current value through the mandatory cash conversion at petition-date pricing, creating what many described as a second-order loss from the custody dependency.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2024 |
| 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.