The device had approximately $450,000 in Bitcoin on it.

Constrained

Case description

A 2025 case involved a Bitcoin holder who had passed away leaving behind a hardware wallet in working condition with a documented PIN but no documented seed phrase. The device had approximately $450,000 in Bitcoin on it. The family's use of the device was effectively a constrained access situation: they could access the wallet and spend Bitcoin, but they had no recovery path if the device ever failed, was lost, or was stolen. A bitcoin custody specialist was engaged to set up a new multisig arrangement where the existing device was used as one signer, with two additional new keys created with properly documented seed phrases—converting the undocumented single-key situation into a documented 2-of-3 multisig with proper recovery paths for all keys.

Custody context

Stress condition	Documentation absent
Custody system	Hardware wallet (single key)
Outcome	Constrained
Documentation	Unknown
Year observed	2025
Country	United States

Structural dependencies observed

Single point of failure

What this illustrates

There was only one way in. When that path was gone, so was access. 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://coinbureau.com/guides/crypto-estate-planning/

Related cases involving documentation absent

193 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.