Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01073
Ledger and Trezor both reported record sales in the second half of 2022.
IndeterminateCase description
In the wake of the 2022 exchange collapses, self-custody hardware wallet sales surged significantly. Ledger and Trezor both reported record sales in the second half of 2022. Recovery service providers documented a subsequent increase in cases where newly acquired hardware wallets were damaged, lost, or improperly set up by first-time users. In many cases users had migrated from exchanges but had failed to test their seed phrase backup before the device failed, leaving them unable to recover funds.
Custody context
| Stress condition | Device loss |
| Custody system | Hardware wallet (single key) |
| Outcome | Indeterminate |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | International |
Structural dependencies observed
What this illustrates
Recovery needed someone with specialized technical knowledge who wasn't available. It's not clear whether anyone ever regained access.
Outcome interpretation
Not enough information is available to determine the outcome.
Source
Publicly Reported
Evidence type
News article
Related cases involving device loss
188 cases involve device loss
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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