The PIN-protected device could not be used by the thief without the PIN.

Constrained

Case description

A Bitcoin holder reported in 2024 that their Ledger Nano S had been stolen in a burglary along with their laptop. The PIN-protected device could not be used by the thief without the PIN. However, the seed phrase backup had also been stored digitally as an encrypted file on the stolen laptop. The holder immediately transferred funds to a new wallet using a backup of the seed phrase they maintained separately, and the stolen device and file were never exploited. The case illustrated the importance of seed phrase separation from devices: holders who stored both device and seed phrase backup in the same physical or digital location faced a dual vulnerability.

Custody context

Stress condition	Device loss
Custody system	Hardware wallet (single key)
Outcome	Constrained
Documentation	Unknown
Year observed	2024
Country	International

What this illustrates

The wallet existed only on that device. When the device became inaccessible, there was no other way back in. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.

Outcome interpretation

Access remained possible, but only with delay, dependence, or significant difficulty.

Source

Privately Reported

Evidence type

News article

Evidence link

https://www.ledger.com/academy/topics/crypto/how-to-find-and-recover-lost-bitcoin-wallets

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

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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.