Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01206
Platform bankruptcy — Celsius (2024)
ConstrainedCase description
On 16 January 2024, the Celsius Network bankruptcy plan became effective and distributions began to creditors who had filed claims. The plan involved returning between 67% and 85% of holdings to creditors in a mix of Bitcoin, Ethereum, and equity shares in the new company (initially called NewCo, later renamed Ionic Digital). Customers whose assets had been frozen since June 2022—more than 18 months—began receiving partial repayments. By August 2024, Celsius had distributed $2.53 billion to over 251,000 creditors. The effective date also triggered tax events for creditors who received crypto distributions at substantially different values than when they had deposited.
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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