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%)
Estate access failure — software wallet (2015)
Mobile or software wallet
A probate attorney documented a 2015 case in which a client's estate included references to Bitcoin on personal computers but no documentation of which software
When the platform disappeared, there was no public address to verify holdings against.
Exchange custody
Evolution Marketplace had advertised multi-signature escrow as a security feature but did not implement it in practice for the majority of transactions. Standar
A Bitcoin investment club that had pooled funds since 2012 dissolved in March 2015.
Exchange custody
A Bitcoin investment club that had pooled funds since 2012 dissolved in March 2015. The club's records of individual member contributions had been maintained on
Documentation absent — software wallet 2015
Mobile or software wallet
A 2015 estate case involved a man who had created paper wallets for each of his three children as gifts but had kept no record of which child was to receive whi
On dissolution, the arbiter's keys became inaccessible, leaving all open disputes
Exchange custody
A Bitcoin escrow arbitration service that had handled high-value OTC trades in 2013–14 dissolved in August 2014. The service had held arbiter keys for dozens of
Only a handful of exchanges provided any form of cryptographic reserve verification.
Exchange custody
In the weeks after the Mt. Gox collapse, users of multiple other exchanges demanded proof of reserves. Only a handful of exchanges (Kraken, Bitstamp, Coinbase)
Documentation absent — exchange 2014
Exchange custody
The post-Mt. Gox environment revealed that several long-running Bitcoin forum-based OTC traders who held 'escrow' for third-party trades had no documented terms
Documentation absent — unknown (2014)
Unknown custody system
The GAW Miners 'HashStaker' cloud mining product, launched in 2014, promised guaranteed hash rate returns with no documentation of underlying hardware. When ret
Documentation absent — exchange custody (2014)
Exchange custody
A Bitcoin social trading network that allowed users to copy-trade expert accounts collapsed in May 2014 when the network's BTC reserve was found to be substanti
Documentation absent — exchange custody (2014)
Exchange custody
Several Bitcoin mutual funds that had raised BTC from investors in 2013 declined to provide NAV statements or audited portfolio reports in mid-2014 when Bitcoin
Documentation absent — exchange custody (2014)
Exchange custody
A Bitcoin savings club that had operated informally among a group of friends collapsed in July 2014 when the member designated to hold group funds disappeared.
Documentation absent — exchange custody (2014)
Exchange custody
Multiple Bitcoin-based investment programs that had operated in 2013–14 became dormant in Q3 2014 as Bitcoin's price fell. They had accepted BTC with no written
Platform bankruptcy — exchange custody (2014)
Exchange custody
When Moolah declared bankruptcy and MintPal went offline in October 2014, no customer account statements, no reserve disclosures, and no formal claims process w
A Bitcoin lending platform collapsed after its founder went silent.
Exchange custody
In November 2014 a Bitcoin lending platform collapsed after its founder went silent. The platform had promised daily interest payments on deposited BTC but publ
Documentation absent — exchange custody (2014)
Exchange custody
Flexcoin's cold wallet customers were told their BTC was safe and would be returned after identity verification. However Flexcoin published no formal claims pro
Documentation absent — software wallet (2014)
Mobile or software wallet
A 2014 forum thread documents a user who inherited a hardware drive with what appeared to be Bitcoin-related files. The deceased had left no documentation of ho
Documentation absent — exchange custody (2014)
Exchange custody
Multiple Bitcoin mining bond issuers who had raised BTC on GLBSE and BTCT.co in 2012–13 stopped paying dividends in mid-2014. They cited hardware depreciation,
Documentation absent — unknown (2014)
Unknown custody system
A cluster of cloud mining contracts sold throughout 2013–2014 by smaller operators had no documented maintenance reserves, no hardware inventory disclosures, an
Estate access failure — software wallet (2014)
Mobile or software wallet
A 2014 estate case involved an executor who located encrypted Bitcoin wallet files on the deceased's computer but found no documentation of the encryption metho
Several ASIC mining hardware manufacturers who had accepted BTC pre-orders in 2013–14
Unknown custody system
Several ASIC mining hardware manufacturers (beyond Butterfly Labs) who had accepted BTC pre-orders in 2013–14 went silent in early 2014. They had no published r
Silk Road 2.0's escrow was entirely centralised with no on-chain multisig.
Exchange custody
Silk Road 2.0's escrow was entirely centralised with no on-chain multisig. The February 2014 hack exploited this architecture. Users had no way to independently
Documentation absent — exchange 2014
Exchange custody
In the wake of the Mt. Gox collapse, several smaller exchanges voluntarily disclosed that they also held customer funds on a fractional basis. These disclosures
A series of 2014 Bitcointalk forum posts documented Bitcoin HYIP operators who held
Exchange custody
A series of 2014 Bitcointalk forum posts documented Bitcoin HYIP (High Yield Investment Program) operators who held customer BTC in wallets with no documented t
Documentation absent 2014
Unknown custody system
A Bitcoin cloud mining company that had sold hash-rate contracts in 2013 stopped publishing mining statistics and pool data in May 2014. The contracts specified
When the December 2013 price peak passed and investors sought to withdraw profits, some
Exchange custody
Several Bitcoin investment platforms that accepted deposits through 2013 maintained no published reserve audits and no documented withdrawal policy. When the De
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