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 — exchange custody (2013)
Exchange custody
PicoStocks's claim that both its hot and cold wallets were simultaneously emptied in November 2013 with no signs of network intrusion pointed to either an insid
Documentation absent — exchange — Australia 2013
Exchange custody
The Inputs.io operator TradeFortress disclosed after the hack that the service had maintained no documented insurance fund or reserve policy for user deposits.
Thousands of FTC complaints had been filed against Butterfly Labs for undelivered ASIC
Unknown custody system
By September 2013 thousands of FTC complaints had been filed against Butterfly Labs for undelivered ASIC miners. The company had no documented refund policy, no
Documentation absent — exchange custody (2013)
Exchange custody
Multiple smaller Bitcoin lending operations on Bitcointalk continued into 2013 without audited balance sheets or documented liability records. When operators di
Documentation absent — exchange custody (2013)
Exchange custody
A pattern of 2013 Bitcointalk mining bond offerings involved issuers who claimed to represent real mining operations but published no verifiable hash rate data,
By mid-2013 the exchange was functionally insolvent but customers had no means to know
Exchange custody
Post-collapse investigation revealed Mt. Gox had no documented cold wallet audit procedure. From at least 2012 the exchange's hot wallet private keys were being
Documentation absent — software wallet (2013)
Mobile or software wallet
A small Bitcoin business in 2013 operated with a single controlling wallet held by one partner who died unexpectedly. No documentation of the wallet location, p
Documentation absent — software wallet 2013
Mobile or software wallet
Bitcoin holders who had generated paper wallets using early online generators discovered in 2013 that some generator sites had been silently logging private key
Documentation absent — software wallet 2013
Mobile or software wallet
A Bitcoin business operating in 2013 stored its operational wallet on a single employee's personal laptop without a documented access protocol or backup procedu
Documentation absent — unknown (2013)
Unknown custody system
Several small Bitcoin mining pools that operated in 2012 and early 2013 ceased operations in 2013 without notice. Pool operators who held unpaid miner balances
Bitfunder's July 2013 hack went unannounced to customers.
Exchange custody
Bitfunder's July 2013 hack went unannounced to customers. Montroll continued operating the platform as if fully solvent, accepting new deposits, processing trad
Documentation absent — exchange custody (2013)
Exchange custody
When Inputs.io shut down in October 2013 after the double hack, TradeFortress posted a statement on Bitcointalk acknowledging the losses but providing no breakd
Documentation absent — exchange custody (2013)
Exchange custody
GBL Exchange provided investors with no verified corporate registration, no identified principals, and no disclosed custody arrangement for the 9,640 BTC it hel
When the SEC questioned Montroll in November 2013 he produced a fabricated screenshot
Exchange custody
Bitfunder's operator provided no audited proof of reserves at any point during the exchange's operation. When the SEC questioned Montroll in November 2013 he pr
Documentation absent — exchange — Japan 2013
Exchange custody
Throughout 2013 Mt. Gox provided no documented breakdown of the gap between customer BTC liabilities and actual wallet holdings. Internal records later revealed
Documentation absent — exchange custody (2013)
Exchange custody
When Vircurex announced its January 2013 hack it provided no technical disclosure of the attack vector, no independent audit of losses, and no timeline for rest
Documentation absent — exchange custody (2013)
Exchange custody
When Bitcoin Rain defaulted in March 2013, operator Leandro Cesar provided no documented accounting of investor funds. He claimed a hack at Mercado Bitcoin had
Documentation absent — software wallet 2012
Mobile or software wallet
A user set up an Armory offline signing arrangement involving two computers. When one of the computers was replaced, the user could not recreate the setup from
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