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%)
The cooperative's founding documents had not specified what happened to collectively
Unknown custody system
Blocked 2018
A Bitcoin mining cooperative that had operated since 2015 dissolved in October 2018 following sustained losses from the bear market. The cooperative's founding
Documentation absent — software wallet (2018)
Mobile or software wallet
Blocked 2018
A November 2018 estate case involved a deceased who had left a letter describing their cryptocurrency holdings as 'substantial.' The estate engaged a blockchain
Documentation absent — exchange custody (2018)
Exchange custody
Blocked 2018
Multiple small exchanges that closed in December 2018 during the bear market did not publish final balance snapshots before going offline. Customers who had fun
Bithumb deleted its tweets about the June 2018 hack within days of the announcement.
Exchange custody
Constrained 2018
Bithumb deleted its tweets about the June 2018 hack within days of the announcement. Security researchers who had archived the original announcements noted inco
Documentation absent — software wallet 2017
Mobile or software wallet
Blocked 2017
An estate attorney documented a 2017 case where the deceased had left a letter stating: 'My Bitcoin is on the computer — the number is on the bottom of the rout
Bithumb declined to disclose the precise amount stolen in its July 2017 hack.
Exchange custody
Constrained 2017
Bithumb declined to disclose the precise amount stolen in its July 2017 hack. Estimates from security researchers ranged from several hundred to several thousan
Documentation absent — exchange — Japan 2017
Exchange custody
Constrained 2017
The Mt. Gox civil rehabilitation process in 2017 required creditors to resubmit claims using an updated online portal. Hundreds of creditors whose original docu
Documentation absent — exchange 2017
Exchange custody
Indeterminate 2017
A Bitcoin investment club that had been operating since 2014 dissolved in February 2017 following an internal dispute. The club had never maintained formal acco
When a run on the exchange occurred in April 2017 following rumours of insolvency,
Exchange custody
Blocked 2017
An exchange that had been operating since 2014 was found to have been operating fractional reserves. When a run on the exchange occurred in April 2017 following
Members had contributed varying amounts of BTC over two years.
Exchange custody
Blocked 2017
A Bitcoin investment syndicate that had operated since 2015 dissolved in July 2017. Members had contributed varying amounts of BTC over two years. The syndicate
Hidden wallet discovered — exchange custody (2017)
Exchange custody
Blocked 2017
A Bitcoin high-yield investment programme collapsed in June 2017 after four months of operation. The operator had never published proof of how returns were gene
Documentation absent — exchange 2017
Exchange custody
Blocked 2017
AlphaBay's escrow system had never published a proof-of-reserves or auditable balance mechanism. When the market was seized, users had no independent record of
Documentation absent — unknown (2017)
Unknown custody system
Blocked 2017
A cloud mining operator that had been running since 2015 suspended all mining allocations in September 2017. The operator claimed profitability had fallen below
Documentation absent — software wallet (2017)
Mobile or software wallet
Indeterminate 2017
An October 2017 estate case involved a deceased who had purchased Bitcoin through multiple methods — an exchange, a mining pool, and several ATMs — over four ye
Platform bankruptcy — exchange custody (2017)
Exchange custody
Indeterminate 2017
YouBit's December 2017 bankruptcy filing never disclosed the precise amount stolen in either the April or December hacks. The exchange's total asset disclosures
Documentation absent — unknown (2017)
Unknown custody system
Blocked 2017
A mining cooperative that had pooled resources since 2014 dissolved in December 2017 after accumulated earnings reached a significant value. The cooperative's f
Documentation absent — exchange custody (2017)
Exchange custody
Constrained 2017
A Bitcoin-backed mortgage product offered to overseas property buyers collapsed in June 2017. The product documentation did not specify what happened to BTC col
Documentation absent — software wallet (2017)
Mobile or software wallet
Constrained 2017
The Bitcoin Cash hard fork on 1 August 2017 created a situation where holders of BTC in wallets that had not been updated were uncertain whether they could safe
Documentation absent — NiceHash (2017)
Exchange custody
Constrained 2017
NiceHash's December 2017 hack announcement did not confirm the precise BTC amount stolen, citing an ongoing investigation. Security researchers independently id
When a partner demanded an accounting in March 2017, the lead trader produced records
Exchange custody
Indeterminate 2017
A Bitcoin investment partnership used an informal agreement to divide trading profits. When a partner demanded an accounting in March 2017, the lead trader prod
Documentation absent — software wallet 2016
Mobile or software wallet
Blocked 2016
An estate attorney documented a 2016 case where a client's deceased relative had left a handwritten note in their will addendum referencing 'forty coins on the
Documentation absent — exchange custody (2016)
Exchange custody
Indeterminate 2016
A group of investors in a Bitcoin-denominated commodity fund discovered in March 2016 that the fund had never registered with any financial authority and had no
Documentation absent — exchange 2016
Exchange custody
Indeterminate 2016
Nucleus had claimed to implement multi-signature escrow but post-closure analysis by blockchain researchers found no evidence the advertised multisig had ever b
Documentation absent — unknown (2016)
Unknown custody system
Blocked 2016
A cloud mining operator that had been issuing daily BTC payouts since 2014 suspended payouts in April 2016 citing 'difficulty adjustments rendering operations u
The report showed the fund's BTC holdings but provided no information on how gains were
Exchange custody
Indeterminate 2016
A Bitcoin tokenised fund that had been operating since 2014 published its first—and only—NAV report in May 2016. The report showed the fund's BTC holdings but p
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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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