Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01236
Platform bankruptcy — FTX (2024)
ConstrainedCase description
On 7 October 2024, US Bankruptcy Judge John Dorsey of the District of Delaware confirmed FTX's reorganisation plan, approving the distribution of more than $14 billion to creditors. Under the confirmed plan, 98% of FTX's creditors were set to receive 119% of the dollar value of their allowed claims within 60 days. The plan was described by the judge as a model Chapter 11 proceeding. Distributions were expected to begin in December 2024, marking the effective resolution of a custody blockage that had lasted two years for more than one million FTX customers.
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.
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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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