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%)
Documentation absent — software wallet (2020)
Mobile or software wallet
A December 2020 estate case involved a Bitcoin holder who had invested heavily in 2020's bull run. No written record of wallet locations, exchange accounts, or
The cooperative's records were destroyed when its server room flooded.
Unknown custody system
A July 2020 case describes a mining cooperative that had issued paper certificates representing shares of mining output since 2017. The cooperative's records we
A forensics firm spent four months identifying 16 of the estimated 20+ wallets.
Mobile or software wallet
A December 2019 estate case described a living but elderly person whose family discovered, during a health crisis, that the person had accumulated Bitcoin over
Documentation absent — exchange — Japan 2019
Exchange custody
In October 2019 the Mt. Gox rehabilitation plan trustee began its claim verification process. Thousands of creditors had to produce documentation of their origi
A Bitcoin syndicate that had been operating since 2016 collapsed in February 2019.
Exchange custody
A Bitcoin syndicate that had been operating since 2016 collapsed in February 2019. The syndicate had never provided members with formal account statements, rely
Documentation absent — exchange custody (2019)
Exchange custody
An ICO project that had raised 1,500 BTC in 2017 published its first—and only—financial report in March 2019 before collapsing. The report showed funds 'allocat
Hidden wallet discovered — exchange custody (2019)
Exchange custody
Grant Thornton, appointed liquidator for Cryptopia in May 2019, found that the exchange had pooled all customer funds in a single shared wallet rather than main
The reports had shown daily BTC outputs but were found to be fabricated.
Unknown custody system
A Bitcoin cloud mining platform that had been issuing daily mining reports closed in May 2019. The reports had shown daily BTC outputs but were found to be fabr
A Bitcoin mining pool that had been operating since 2016 collapsed in June 2019.
Unknown custody system
A Bitcoin mining pool that had been operating since 2016 collapsed in June 2019. The pool had never published its fee schedule, payout algorithm, or hashrate ve
Binance disputed the authenticity of the data but acknowledged a third-party KYC
Exchange custody
In July 2019 Binance experienced a reported KYC data leak where a Telegram channel began posting KYC documents — passport photos and identity documents — of Bin
A Bitcoin-backed energy trading platform collapsed in July 2019.
Exchange custody
A Bitcoin-backed energy trading platform collapsed in July 2019. The platform had claimed to use blockchain for energy certificate verification, but independent
The platform's CEO published a blog post saying all BTC had been lost in a hack
Exchange custody
A Bitcoin lending platform that had been paying monthly returns suspended operations in August 2019 and claimed insolvency. The platform's CEO published a blog
A Bitcoin OTC trading desk collapsed in September 2019 with disputed balances.
Exchange custody
A Bitcoin OTC trading desk collapsed in September 2019 with disputed balances. Clients had deposited BTC for settlement purposes. The desk's internal accounting
Documentation absent — software wallet 2019
Mobile or software wallet
An estate attorney described a November 2019 case in which the deceased had maintained a complex spreadsheet listing Bitcoin holdings across multiple wallets an
Documentation absent — software wallet (2019)
Mobile or software wallet
An October 2019 estate case involved a living but cognitively impaired person whose family sought access to their Bitcoin holdings. The person had accumulated c
The exchange's books showed large customer liabilities that had no corresponding
Exchange custody
The E&Y forensic investigation into QuadrigaCX found that Gerald Cotten had operated six 'cold wallets' that were actually empty or nearly empty. The exchange's
Documentation absent — Coincheck (2018)
Exchange custody
Coincheck had stored all NEM in a single hot wallet with no multi-signature protection, contrary to industry standards. The exchange had not disclosed this prac
Documentation absent — exchange custody (2018)
Exchange custody
Italian courts later found that BitGrail's CEO Francesco Firano had been aware of the Nano theft since mid-2017 and had deliberately misrepresented the exchange
Documentation absent — exchange custody (2018)
Exchange custody
A Bitcoin fund manager who had raised BTC through informal agreements with friends and family lost 80% of the managed funds through undisclosed leverage trading
When investors demanded redemption, the manager claimed losses from the January 2018
Exchange custody
A Bitcoin hedge fund that had raised BTC from high-net-worth individuals in 2017 collapsed in March 2018. The fund manager had never provided audited accounts o
Within four months of the report the platform suspended operations.
Exchange custody
A Bitcoin lending platform that had been issuing monthly interest for 18 months posted its first transparency report in May 2018. The report showed headline BTC
Documentation absent — exchange custody (2018)
Exchange custody
An ICO project that had raised 2,000 BTC in a 2017 token sale collapsed in July 2018 without delivering its product. The founders claimed development costs had
Documentation absent — exchange 2018
Exchange custody
A Bitcoin staking platform advertised 'proof of reserves' in August 2018 but the proof consisted of screenshots of wallet balances rather than cryptographically
Documentation absent — Zaif (2018)
Exchange custody
Zaif's September 2018 hack involved funds stored in hot wallets, 32% of which were Zaif's own reserves and 68% customer assets. The exchange had never disclosed
Documentation absent — exchange 2018
Exchange custody
A Bitcoin investment club that had pooled member contributions into a shared wallet since 2016 dissolved in September 2018. The club had maintained a shared spr
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