CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01281

Court approval of the FTX reorganisation plan, international creditors across more than

Constrained
Case description
Following the October 2024 court approval of the FTX reorganisation plan, international creditors across more than 200 jurisdictions faced varying timelines and compliance hurdles before receiving distributions. The plan required creditors to complete KYC verification, register with a distribution agent, and meet local legal requirements. FTX's estate noted it was working to finalise arrangements for distributions across more than 200 countries. International customers who had not maintained contact with the claims process, or whose email addresses on file were no longer valid, faced additional delays. Some creditors in jurisdictions with limited distribution agent coverage faced extended waits.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeConstrained
DocumentationUnknown
Year observed2024
CountryInternational
Structural dependencies observed
Institutional cooperation requiredLegal process required
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
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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