Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01260
The remaining 3% was expected within 12 months pending additional DCG recoveries.
SurvivesCase description
On 21 May 2024, the US Bankruptcy Court for the Southern District of New York confirmed Genesis's reorganisation plan. By end of May 2024, approximately 97% of digital assets owed to Gemini Earn users were distributed in kind. Gemini contributed $50 million of its own funds to the recovery. The 97% initial tranche represented approximately $2.18 billion. Gemini called the outcome a 232% recovery from the November 2022 freeze value—because the in-kind repayment meant users received appreciated Bitcoin and Ethereum rather than their 2022 dollar value. The remaining 3% was expected within 12 months pending additional DCG recoveries.
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
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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