Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01245
Platform bankruptcy — exchange custody (2024)
SurvivesCase description
Silvergate Capital, a crypto-focused bank that had been a critical fiat on-ramp for major exchanges and institutions, filed for Chapter 7 bankruptcy in September 2024 after winding down its banking operations in March 2023. Crypto company clients that had held fiat at Silvergate received distributions through the bankruptcy process. While the assets involved were fiat rather than Bitcoin directly, the Silvergate failure illustrated how the banking infrastructure supporting cryptocurrency access was itself subject to custody stress—crypto companies that relied on Silvergate for dollar settlements had been unable to process Bitcoin purchases and sales through the bank since March 2023.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2024 |
| Country | United States |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
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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