Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01158
Device lost — hardware wallet 2023
BlockedCase description
A user who had purchased a hardware wallet in 2019 reported in 2023 that the device had been stolen in a home burglary. The thief had access to both the hardware device and, because the seed phrase had been stored in the same location, the backup. The user moved funds immediately using a memorized passphrase on a secondary device—but discovered the thief had already initiated a transfer. The coexistence of device and seed phrase in the same physical location—a common security failure—enabled the theft.
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)
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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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