Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01270
BlockFi had filed for Chapter 11 bankruptcy in November 2022 following FTX's collapse.
ConstrainedCase description
BlockFi creditors continued waiting for distributions through 2024. BlockFi had filed for Chapter 11 bankruptcy in November 2022 following FTX's collapse. Throughout 2024, BlockFi's estate worked to resolve claims and begin repayments. However, significant litigation was ongoing—including claims against FTX's estate and disputes about the treatment of client assets. BlockFi customers who had held Bitcoin in the platform's interest-bearing accounts were classified as unsecured creditors with recovery rates substantially below 100%. The extended timeline meant customers had missed the 2023-2024 Bitcoin price recovery while their assets remained locked in the bankruptcy estate at petition-date values.
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
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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