CustodyStress
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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%)
A November 2021 estate case involved a recently deceased Bitcoin day trader.
Mobile or software wallet
Constrained 2021
A November 2021 estate case involved a recently deceased Bitcoin day trader. The trader had documented their trading activity meticulously but had never recorde
The 3,200 BTC gap had been spent on personal expenses over four years.
Exchange custody
Blocked 2021
A Bitcoin fund that had claimed to hold 4,000 BTC on behalf of investors was found in February 2021 to have actual holdings of only 800 BTC. The fund manager ha
Documentation absent — exchange custody (2021)
Exchange custody
Indeterminate 2021
A DeFi yield aggregator that had accumulated over $200 million in Bitcoin-backed collateral was found in June 2021 to have published exaggerated reserve figures
The chat history showed 142 BTC contributed but none traceable.
Exchange custody
Blocked 2021
A Bitcoin savings club run informally through a messaging app since 2019 collapsed in March 2021. Members had contributed regularly but no formal records existe
Documentation absent — software wallet (2021)
Mobile or software wallet
Constrained 2021
A September 2021 estate case involved an estate attorney who had been appointed to manage a Bitcoin inheritance. The attorney found the deceased had maintained
Documentation absent — exchange custody (2021)
Exchange custody
Blocked 2021
AfriCrypt, a South African Bitcoin investment platform, allegedly disappeared in June 2021 with an estimated 69,000 BTC worth $3.6 billion. The founders, Raees
Documentation absent — exchange custody (2021)
Exchange custody
Indeterminate 2021
An automated Bitcoin trading bot service published its first audit in July 2021 after two years of operations. The audit found the bot had never achieved the cl
Hidden wallet discovered — exchange custody (2021)
Exchange custody
Indeterminate 2021
The Liquid hack post-mortem found the exchange had not published any description of its warm wallet architecture to customers. Customers who had relied on Liqui
Documentation absent — unknown (2021)
Unknown custody system
Blocked 2021
A Bitcoin cloud mining operation collapsed in August 2021 having never disclosed that it did not own any mining hardware. Marketing materials cited specific has
A Bitcoin-denominated reinsurance platform collapsed in September 2021.
Exchange custody
Blocked 2021
A Bitcoin-denominated reinsurance platform collapsed in September 2021. The platform had claimed to hold Bitcoin reserves sufficient to cover all outstanding po
Documentation absent — exchange 2021
Exchange custody
Indeterminate 2021
A Bitcoin exchange published a proof-of-reserves in October 2021 that was later found to contain duplicated addresses. The same wallet address appeared under mu
Hidden wallet discovered — exchange custody (2021)
Exchange custody
Blocked 2021
A Bitcoin-backed investment platform that had attracted $50 million collapsed in November 2021. Post-collapse investigation found the platform had never actuall
The fund had been launched in January 2021 and attracted 600 BTC.
Exchange custody
Blocked 2021
A Bitcoin fund collapsed in December 2021. The fund had been launched in January 2021 and attracted 600 BTC. The fund's offering documents described a sophistic
Documentation absent — exchange custody (2020)
Exchange custody
Blocked 2020
A Bitcoin fund manager who had operated informally since 2016 disappeared in February 2020, taking client BTC with them. The fund had operated entirely through
Documentation absent — exchange custody (2020)
Exchange custody
Blocked 2020
A Bitcoin arbitrage fund that had raised funds informally through social media collapsed in March 2020 during the COVID crash. The operator had never provided a
The operator claimed all Bitcoin had been lost to a 'black swan market event' but could
Exchange custody
Blocked 2020
A Bitcoin loan platform that had been paying consistent monthly returns since 2018 collapsed in April 2020 during COVID. The operator claimed all Bitcoin had be
A Bitcoin cloud mining platform collapsed in May 2020.
Unknown custody system
Blocked 2020
A Bitcoin cloud mining platform collapsed in May 2020. The platform had been issuing mining reports showing hash rate activity and daily BTC payouts. Post-colla
Documentation absent — exchange custody (2020)
Exchange custody
Indeterminate 2020
A DeFi yield optimisation protocol that launched in July 2020 attracted significant BTC-backed deposits before being exploited. The protocol's documentation con
Users who had deposited BTC had no documentation to support insurance or legal claims.
Exchange custody
Indeterminate 2020
A Bitcoin yield farming platform that had launched in July 2020 during the DeFi summer collapsed in August 2020 after being exploited. The platform had no audit
Documentation absent — exchange custody (2020)
Exchange custody
Indeterminate 2020
Post-hack analysis of the KuCoin breach confirmed the exchange had stored hot wallet private keys without multi-signature protection despite claiming industry-s
Documentation absent — exchange 2020
Exchange custody
Indeterminate 2020
A Bitcoin custody platform popular with European HNW clients published its first proof-of-reserves in September 2020. Independent verification found the proof w
Documentation absent — exchange custody (2020)
Exchange custody
Blocked 2020
An OTC Bitcoin trading desk collapsed in October 2020 with approximately 80 BTC in outstanding client deposits. The desk had never issued formal account stateme
Hidden wallet discovered — software wallet (2020)
Mobile or software wallet
Constrained 2020
A November 2020 estate case involved a recently deceased Bitcoin holder who had told family members about their holdings every year but never written anything d
Documentation absent — exchange custody (2020)
Exchange custody
Indeterminate 2020
A November 2020 estate case involved a deceased who had operated as an informal Bitcoin market maker since 2015. Dozens of counterparties had outstanding settle
Documentation absent — hardware wallet (2020)
Hardware wallet (single key)
Indeterminate 2020
When Ledger's July 2020 customer data was published in December 2020, 272,000 customers found their home addresses, phone numbers, and order details publicly av
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Other stress categories
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
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