Part of the CustodyStress archive of observed Bitcoin custody incidents
Vendor lockout
Cases in this category involve custody services or platforms that became inaccessible, either through insolvency, policy changes, or loss of account access.
Vendor lockout cases document the dependency risk of exchange and custodial custody. Cases range from regulatory seizure and bankruptcy to account verification failures and platform discontinuation. A recurring pattern is that users assumed institutional custody provided access redundancy; in practice, the institution itself was the single point of failure.
170 observed cases
Blocked
22 (13%)
Constrained
83 (49%)
Survives
48 (28%)
Indeterminate
17 (10%)
Platform bankruptcy — exchange custody (2023)
Exchange custody
Bittrex Global—the non-US arm of Bittrex that had continued operating while the US entity went through bankruptcy—announced in early December 2023 that it was c
For the 340,000 Earn users still blocked, this was the first concrete indication of
Exchange custody
In February 2023, Gemini announced it would contribute up to $100 million of its own cash to the Genesis bankruptcy recovery plan, specifically earmarked for Ge
Platform bankruptcy — FTX (2023)
Exchange custody
BlockFi's bankruptcy estate spent much of 2023 in complex negotiations with the FTX bankruptcy estate, which owed BlockFi approximately $355 million and against
Institutional lockout — exchange custody (2023)
Exchange custody
Babel Finance, the Hong Kong-based crypto lender that had frozen withdrawals in June 2022, secured a moratorium on legal proceedings in Q2 2023 as it pursued a
Institutional lockout — exchange custody (2023)
Exchange custody
JPEX, a Hong Kong-based crypto exchange, began showing signs of stress in mid-2023, ultimately blocking customer withdrawals in September 2023. The exchange, he
BKex exchange suspended all customer withdrawals, citing an ongoing money laundering
Exchange custody
In May 2023, BKex exchange suspended all customer withdrawals, citing an ongoing money laundering probe. The exchange then shut down its website, apps, and cust
The Celsius bankruptcy court approved creditor voting on a reorganization plan
Exchange custody
In August 2023, the Celsius bankruptcy court approved creditor voting on a reorganization plan involving the sale of assets to the Fahrenheit consortium. Court
98% of Celsius creditors voted in favor of the reorganization plan, an overwhelming
Exchange custody
In September 2023, 98% of Celsius creditors voted in favor of the reorganization plan, an overwhelming mandate reflecting customers' preference for any structur
Over 2,000 complaints were filed with Hong Kong police.
Exchange custody
The September 2023 JPEX collapse in Hong Kong saw an estimated HK$1.4 billion (approximately $180 million USD) frozen when the exchange suspended withdrawals. T
However, actual distributions did not begin until January 2024, when the plan became
Exchange custody
On 9 November 2023, Bankruptcy Judge Martin Glenn confirmed Celsius's Chapter 11 reorganization plan. The confirmation—18 months after the initial withdrawal fr
Platform bankruptcy — Celsius (2023)
Exchange custody
As Bitcoin's price began recovering in Q4 2023—approaching $35,000 by October—Celsius, Genesis, and Voyager creditors found themselves in an ironic situation: t
Platform bankruptcy — Celsius (2023)
Exchange custody
As Celsius, Voyager, and Genesis creditors waited through 2023 for resolution, tax professionals identified a specific custody stress that extended beyond acces
Platform bankruptcy — exchange custody (2023)
Exchange custody
Bittrex's August 2023 deadline for customers to claim assets through the bankruptcy process required all claimants to complete KYC verification—including provid
Platform bankruptcy — FTX (2023)
Exchange custody
FTX estate administrators in 2023 began the process of identifying and clawing back funds from various counterparties, including exchanges, lending desks, and i
Institutional lockout — Coinbase (2023)
Exchange custody
The June 2023 SEC lawsuits against Coinbase and Binance prompted immediate self-protective actions by both exchanges. Coinbase restricted certain trading pairs
Platform bankruptcy — exchange custody (2023)
Exchange custody
On 8 May 2023, Bittrex filed for Chapter 11 bankruptcy in Delaware after the SEC sued the exchange in April for operating an unregistered securities exchange. U
Institutional lockout — exchange custody (2023)
Exchange custody
Nexo, a crypto lender, reached a $45 million settlement with a coalition of US state regulators in January 2023 after being accused of operating illegally as an
Institutional lockout — FTX (2023)
Exchange custody
Throughout the first half of 2023, FTX creditors navigated a complex claims submission process managed by new CEO John Ray III. The process required submission
Platform bankruptcy — Celsius (2023)
Exchange custody
On 4 January 2023, Judge Martin Glenn of the Southern District of New York ruled definitively that Celsius's Earn account funds belonged to the Celsius bankrupt
Platform bankruptcy — Gemini (2023)
Exchange custody
On 19 January 2023, Genesis Global Capital filed for Chapter 11 bankruptcy protection in the Southern District of New York, listing liabilities between $1.2 bil
Celsius filed for Chapter 11 bankruptcy on 13 July 2022.
Exchange custody
On 12 June 2022 Celsius Network froze all withdrawals, swaps, and transfers for its approximately 1.7 million users without prior warning. The platform cited 'e
Voyager filed for Chapter 11 bankruptcy on 5–6 July 2022.
Exchange custody
On 1 July 2022, Voyager Digital suspended all trading, deposits, withdrawals, and loyalty rewards for its approximately 3.5 million customers. The company cited
Hodlnaut had approximately $500 million in assets under management and had suffered
Exchange custody
On 8 August 2022, Singapore-based crypto lender Hodlnaut froze all withdrawals, token swaps, and deposits, citing 'recent market conditions.' The company simult
Gox rehabilitation trustee Nobuaki Kobayashi set a deadline of 15 September 2022
Exchange custody
In September 2022, Mt. Gox rehabilitation trustee Nobuaki Kobayashi set a deadline of 15 September 2022 for the approximately 127,000 creditors to register thei
Institutional custody dependency — exchange — Japan 2022
Exchange custody
After the September 2022 Mt. Gox claim registration deadline passed, the trustee still could not set a repayment date, stating it would be determined 'in due co
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