Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01207
Platform bankruptcy — exchange custody (2024)
SurvivesCase description
The January 2024 approval of spot Bitcoin ETFs in the United States led to a surge in trading volume that stressed some exchange infrastructure. Several smaller exchanges experienced temporary withdrawal delays of hours to days as they processed exceptionally high volumes of customer requests following the ETF launch. While not a custody failure in the bankruptcy sense, the temporary withdrawal delays illustrated how institutional custody infrastructure—even at well-capitalised exchanges—could become a bottleneck during period of extreme market activity, temporarily blocking customers from accessing their Bitcoin.
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.
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