Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01131
Physical coercion — hardware wallet (2023)
BlockedCase description
A 2023 FBI report noted increasing reports of 'crypto mugging'—a form of street robbery targeting mobile phone users transacting on crypto exchange apps in public. In several documented cases in major US cities, victims were approached by individuals who observed them using crypto apps, physically grabbed the phone, and transferred funds before the phone could be locked or the transaction cancelled. The cases were distinct from traditional phone theft because the goal was immediate crypto transfer rather than device resale.
Custody context
| Stress condition | Physical coercion |
| Custody system | Hardware wallet (single key) |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | United States |
Structural dependencies observed
What this illustrates
Access required in-person verification that couldn't be arranged under the circumstances. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
News article
Related cases involving physical coercion
105 cases involve physical coercion
274 cases involve hardware wallet (single key)
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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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