Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01165
Documentation absent — hardware wallet (2023)
BlockedCase description
A 2023 analysis by estate planning attorneys found that Bitcoin holders who had set up self-custody during 2020–2021 represented a new cohort of undocumented holdings. Purchases made during the COVID-era bull run were often made impulsively through apps, with seed phrases screenshot to a phone's camera roll rather than written down. Phone upgrades or resets in the intervening two to three years had wiped these backups, leaving holders with no recovery path. The pattern was distinct from earlier eras because the failures were concentrated in mobile app wallets rather than desktop or hardware wallets.
Custody context
| Stress condition | Documentation absent |
| Custody system | Hardware wallet (single key) |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | International |
Structural dependencies observed
What this illustrates
There was only one way in. When that path was gone, so was access. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
News article
Related cases involving documentation absent
193 cases involve documentation absent
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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