Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01240
Institutional lockout — FTX (2024)
IndeterminateCase description
FTX creditors who had submitted claims but subsequently failed to pass KYC verification by the distribution agents faced a secondary blockage in late 2024 as the first distributions were being prepared. The KYC process required government-issued ID, proof of address, and in some cases enhanced due diligence for claims above certain dollar thresholds. Creditors whose documentation did not match their claim records—due to name changes, address changes, or document formatting issues—had their distributions placed in hold status pending manual review. The FTX estate noted this as a significant operational challenge across more than 200 jurisdictions.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Indeterminate |
| 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. It's not clear whether anyone ever regained access.
Outcome interpretation
Not enough information is available to determine the outcome.
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.
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