The addresses were identified but showed zero balance—the Bitcoin had been moved to

Blocked

Case description

A North Carolina estate attorney described a 2024 case involving a deceased holder whose estate included an undocumented Bitcoin position only discovered when reviewing old tax returns showing capital gains from 2017. The returns indicated Bitcoin holdings that had never been discussed with family or included in estate planning documents. A blockchain analyst was hired to identify the wallet addresses from transaction records. The addresses were identified but showed zero balance—the Bitcoin had been moved to an unknown wallet in 2019. Whether the holder had sold, lost access, or moved to a different address could not be established. The estate had no viable path to recovery.

Custody context

Stress condition	Documentation absent
Custody system	Hardware wallet (single key)
Outcome	Blocked
Documentation	Unknown
Year observed	2024
Country	United States

Structural dependencies observed

Single point of failure

What this illustrates

No backup path existed. One point of failure was all it took. Access was not recoverable.

Outcome interpretation

Access was not possible under the reported conditions.

Source

Privately Reported

Evidence type

News article

Evidence link

https://www.carolinaestateplanning.com/blog/why-90-of-crypto-holders-will-accidentally-disinherit-their-families/

Related cases involving documentation absent

167 cases involve documentation absent 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.