Part of the CustodyStress archive of observed Bitcoin custody incidents
Documentation absent
Cases in this category involve custody arrangements where no documentation existed describing how to access or recover the Bitcoin.
Documentation absence is the custody failure mode most likely to affect heirs and executors rather than owners directly. The owner typically knows how to access their Bitcoin; the failure only becomes apparent when someone else must act. Cases in this category range from informal single-person setups to institutional arrangements where no documented procedure survived the individuals who built them.
193 observed cases
Blocked
105 (54%)
Constrained
29 (15%)
Survives
10 (5%)
Indeterminate
49 (25%)
Tax returns confirmed significant Bitcoin holdings, but no seed phrase could be found.
Hardware wallet (single key)
An estate executor in New York in 2023 located a Ledger Nano S in a desk drawer of a deceased holder. Tax returns confirmed significant Bitcoin holdings, but no
Documentation absent — hardware wallet (2023)
Hardware wallet (single key)
A 2023 report from Unchained Capital estimated that up to 3.8 million Bitcoin—roughly 19% of the total supply—are in lost or stranded wallets. The report catego
Documentation absent — hardware wallet (2023)
Hardware wallet (single key)
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 ho
Documentation absent — exchange 2023
Exchange custody
Mt. Gox creditors who had not retained documentation of their 2014 holdings encountered a claims verification problem in 2023 as the trustee prepared for distri
A blockchain explorer search on addresses visible from old emails showed a wallet
Hardware wallet (single key)
A 2023 estate case involved a deceased Bitcoin holder whose will stated 'I leave all my property to my children' with no digital asset specifics. The estate att
The minimum threshold for the specific Shamir scheme used was 2-of-3.
Hardware wallet (single key)
A 2023 case involved a Bitcoin holder who had set up a complex custody arrangement using Shamir's Secret Sharing across three trusted contacts in 2020. By 2023,
The April 2023 deadline for Mt.
Exchange custody
The April 2023 deadline for Mt. Gox creditors to provide repayment information revealed that many creditors had not updated their contact details or banking inf
When the bankruptcy required active participation to recover funds—including
Exchange custody
Bittrex's bankruptcy revealed a documentation problem specific to long-inactive accounts: the exchange had millions of customers who had opened accounts years e
Platform bankruptcy — Celsius (2023)
Exchange custody
A July 2023 Celsius bankruptcy court ruling extended the January 2023 Earn decision to retail borrowers, holding that customers who had borrowed from Celsius an
Estate access failure — Coinbase (2023)
Exchange custody
A 2023 probate case in Florida involved a deceased Bitcoin holder who had accounts on three different exchanges—Coinbase, Kraken, and a now-defunct smaller exch
Platform bankruptcy — FTX (2023)
Exchange custody
FTX creditors attempting to submit claims in early 2023 encountered a pervasive documentation problem: FTX's pre-bankruptcy records were incomplete, disorganise
Device discarded — hardware wallet (2023)
Hardware wallet (single key)
A 2023 case highlighted a recurring pattern: a Bitcoin holder who had purchased in 2017 at the height of a bull run had stored their seed phrase inside a person
Recovery services and wallet manufacturers noted an increase in support requests in Q3
Hardware wallet (single key)
In the rush to move funds off exchanges following the Celsius and Voyager collapses in mid-2022, a documented cohort of users set up self-custody wallets hastil
Documentation absent — exchange — Japan 2022
Exchange custody
Many Mt. Gox creditors attempting to register their 2022 claims encountered documentation barriers stemming from the 2014 collapse era. Original account stateme
When the husband died unexpectedly in 2022, the wife found multiple hardware devices
Hardware wallet (single key)
A husband and wife co-managed a Bitcoin holding using a multisignature wallet setup designed by the husband without fully explaining the structure to his wife.
Estate access failure — hardware wallet (2022)
Hardware wallet (single key)
A 2022 case cited in estate planning literature involved an executor who discovered after appointment that the deceased had held Bitcoin but had never created a
The bankruptcy proceedings revealed that Celsius had been using customer assets
Exchange custody
Celsius's terms of service had contained language giving the company ownership of deposited assets in exchange for yield, but the vast majority of users were un
Customers had deposited Bitcoin and other assets under a materially false understanding
Exchange custody
Voyager had marketed its services with prominent references to FDIC insurance, leading many customers to believe their crypto deposits were federally insured. T
A class action lawsuit filed in 2022 alleged that this constituted fraudulent
Exchange custody
Voyager's marketing materials had prominently displayed the FDIC logo and used language suggesting customer protection equivalent to an FDIC-insured bank. A cla
After withdrawals were frozen, it emerged that the company had lost approximately $190
Exchange custody
Hodlnaut had hidden its exposure to TerraUSD from customers and regulators. After withdrawals were frozen, it emerged that the company had lost approximately $1
The bankruptcy proceedings revealed this was false: customer assets had been commingled
Exchange custody
FTX had published terms of service stating that customer assets were held in segregated accounts and were not company property. The bankruptcy proceedings revea
In 2022, attempting to use the key produced errors.
Hardware wallet (single key)
A Bitcoin holder who had purchased BTC in 2017 through a peer-to-peer sale had never created a formal wallet—the private key was a manually typed string they ha
Documentation absent — hardware wallet (2022)
Hardware wallet (single key)
Estate professionals in 2022 continued to document cases where the deceased had not included Bitcoin in their will, despite the asset being their largest holdin
Documentation absent — hardware wallet (2022)
Hardware wallet (single key)
A UK-based executor in 2022 found a Ledger hardware device among a deceased's belongings but no seed phrase. The executor also found a handwritten note that app
Documentation absent — Celsius (2022)
Exchange custody
BlockFi's interest accounts had terms of service that transferred ownership of deposited crypto to BlockFi in exchange for yield payments, similar to Celsius. M
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