In 2013, Cyprus faced a severe financial crisis, and its banking system was on the verge of collapse. To prevent a complete financial meltdown, the government proposed a controversial "bail-in" plan, which involved seizing a portion of bank deposits held by individuals to recapitalize the failing banks.

Amid this financial turmoil, many Cypriots turned to Bitcoin as a means of protecting their savings. They saw Bitcoin as a way to circumvent the government's restrictions and safeguard their wealth from the banking crisis.