Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01172
Destroyed in flood — Ledger Nano S (2023)
BlockedCase description
A hardware wallet user in 2023 discovered their Ledger Nano S had been damaged by a household flood. The device was non-functional. The owner had written the seed phrase on a single piece of paper that was stored in a drawer in the same room—the paper had been destroyed in the flood as well. With neither the device nor the seed phrase recoverable, and no cloud backup, the Bitcoin was permanently inaccessible. The case was a single-point-of-failure scenario: both the primary device and the only backup existed in the same physical location.
Custody context
| Stress condition | Device loss |
| Custody system | Hardware wallet (single key) |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | International |
What this illustrates
The wallet existed only on that device. When the device became inaccessible, there was no other way back in. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Privately Reported
Evidence type
News article
Related cases involving device loss
188 cases involve device loss
274 cases involve hardware wallet (single key)
View archive statistics →
This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
Submit a case
← All cases
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.
Translate