Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01271
Under the plan effective January 2024, these customers were projected to recover
ConstrainedCase description
Celsius creditors who had held assets in the platform's Earn programme were classified as unsecured creditors throughout the bankruptcy, meaning their recovery rank was lower than secured creditors. Under the plan effective January 2024, these customers were projected to recover between 67% and 85% of holdings, compared to 100% for custody-account holders. Customers who had deposited during 2022's market peak faced the largest absolute losses: they had deposited at high prices, received partial recovery at lower values, and missed the 2023-2024 market recovery while waiting for distributions.
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.
Submit a case
← All cases
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.
Translate