Part of the CustodyStress archive of observed Bitcoin custody incidents
Device loss
Cases in this category involve devices that were lost, destroyed, or otherwise became inaccessible. Where no independent recovery path — seed phrase, wallet backup, or documented recovery procedure — existed, access could not be recovered.
Device loss is one of the most common Bitcoin custody stress conditions in this archive. Across observed cases, the outcome depends primarily on whether an independent recovery path existed at the time of loss. Where a seed phrase or wallet backup was stored separately from the device, custody typically survived the loss event. Where no independent backup existed, access was permanently blocked.
188 observed cases
Blocked
133 (71%)
Constrained
5 (3%)
Survives
49 (26%)
Indeterminate
1 (1%)
Device lost — software wallet 2020
Mobile or software wallet
A user who had stored a wallet exclusively on an iPhone found in December 2020 that Apple's iCloud backup had been deactivated on that phone due to insufficient
Among items stolen was a laptop containing their primary Bitcoin Core wallet.
Mobile or software wallet
A Bitcoin investor's home was broken into in January 2020. Among items stolen was a laptop containing their primary Bitcoin Core wallet. Their seed backup was s
A user's smartphone was stolen from their car in January 2020.
Mobile or software wallet
A user's smartphone was stolen from their car in January 2020. The phone contained their primary Bitcoin wallet. The wallet app had no additional PIN beyond the
Device lost — hardware wallet 2020
Hardware wallet (single key)
A Trezor user had their home flooded by a burst pipe in February 2020 while they were on holiday. Their hardware device and seed phrase paper backup were both o
Due to COVID-19 restrictions, the manufacturer's facility was closed for six weeks.
Hardware wallet (single key)
A hardware wallet user's device was shipped to a manufacturer for repair of a firmware issue in May 2020. Due to COVID-19 restrictions, the manufacturer's facil
A Bitcoin holder's home was broken into while they were on holiday in June 2020.
Mobile or software wallet
A Bitcoin holder's home was broken into while they were on holiday in June 2020. Two computers and a hardware wallet were stolen. The hardware wallet's seed was
Device lost — software wallet (2020)
Mobile or software wallet
A user who kept their Bitcoin wallet on a work computer had the machine seized by their employer in March 2020 when they were made redundant during COVID-19 cos
Device lost — hardware wallet 2019
Hardware wallet (single key)
A user discovered in December 2019 that their hardware wallet, stored in a fireproof box, had been exposed to temperatures that exceeded the device's operationa
A Bitcoin user's storage unit was broken into in September 2019.
Mobile or software wallet
A Bitcoin user's storage unit was broken into in September 2019. Among items stolen was a desktop computer containing their primary wallet file. The seed backup
The flooding submerged a desktop computer containing their primary Bitcoin Core wallet.
Mobile or software wallet
A Bitcoin holder's home suffered a burst pipe in January 2019. The flooding submerged a desktop computer containing their primary Bitcoin Core wallet. Water dam
Hidden wallet discovered — software wallet (2019)
Mobile or software wallet
A user whose laptop was stolen at a conference in February 2019 found that the thief had accessed their Bitcoin wallet before they could remotely wipe the machi
A Bitcoin investor had their phone stolen from their car in April 2019.
Mobile or software wallet
A Bitcoin investor had their phone stolen from their car in April 2019. The phone's Bitcoin wallet app had a biometric lock but the thief used a physical finger
The Pi's SD card failed due to excessive write cycles in April 2019.
Mobile or software wallet
An April 2019 forum case describes a user who had stored their wallet on an old Raspberry Pi used as a home server. The Pi's SD card failed due to excessive wri
Hidden wallet discovered — software wallet (2019)
Mobile or software wallet
A Bitcoin miner's old computer from 2011 was discovered in a self-storage unit in May 2019. The unit's climate control had failed at some point over the years,
Border confiscation — software wallet (2019)
Mobile or software wallet
A user's laptop was confiscated by customs officials at an international border in June 2019 as part of a financial investigation into a third party. The laptop
A user sent an old laptop to a certified electronics recycler in July 2019.
Mobile or software wallet
A user sent an old laptop to a certified electronics recycler in July 2019. Upon realising the wallet.dat file was still on the drive, they contacted the recycl
Destroyed by lightning — software wallet (2019)
Mobile or software wallet
A programmer's desktop computer was struck by a power surge from a nearby lightning strike in September 2019. The motherboard and hard drives were simultaneousl
An October 2019 forum case describes a user who had their MacBook stolen at an airport.
Mobile or software wallet
An October 2019 forum case describes a user who had their MacBook stolen at an airport. The machine contained an encrypted wallet. The thief attempted to crack
Device lost — software wallet (2019)
Mobile or software wallet
An October 2019 case describes a user whose phone was confiscated at a border crossing during an extended security screening. The officials cloned the phone's s
The NAS held the only copy of their Bitcoin Core wallet.
Mobile or software wallet
A developer's NAS device failed catastrophically in November 2019 due to a RAID controller malfunction that corrupted all drives simultaneously. The NAS held th
Device lost — software wallet 2019
Mobile or software wallet
A user found in November 2019 that their cloud backup service had not backed up their wallet directory due to a configuration error. The local hard drive had fa
Hidden wallet discovered — Trezor (2019)
Hardware wallet (single key)
A Trezor user whose device was destroyed in a kitchen fire in February 2019 found that their seed phrase, stored in a nearby drawer, had also been damaged. Most
Device discarded — hardware wallet (2019)
Hardware wallet (single key)
A Ledger user left their hardware wallet in a hotel room during a business trip in March 2019. The hotel housekeeping service discarded the device thinking it w
Device lost — software wallet (2019)
Mobile or software wallet
A Bitcoin holder's tablet, used exclusively for cold wallet access, was confiscated in May 2019 by police in connection with a neighbour's criminal investigatio
A user's home was flooded in June 2019 by a burst main water pipe.
Hardware wallet (single key)
A user's home was flooded in June 2019 by a burst main water pipe. Their hardware wallet device was submerged for 36 hours. The device was non-functional after
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