Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01372
The platform, which had filed for bankruptcy in November 2022, approved a plan in late
ConstrainedCase description
BlockFi's distribution to creditors continued throughout 2025. The platform, which had filed for bankruptcy in November 2022, approved a plan in late 2024 that provided partial recovery to retail creditors. By mid-2025, the first distributions were being processed, but the recovery rate for most retail creditors was substantially below 100% of their deposited value. BlockFi creditors who had held Bitcoin on the platform received a cash payment based on their account value at petition date, with the same structural loss issue as FTX creditors: Bitcoin's appreciation between 2022 and 2025 was not captured.
Custody context
| Stress condition | Vendor lockout |
| Custody system | Exchange custody |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2025 |
| 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
Evidence link
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.