Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01386
Forced relocation — hardware wallet (2025)
ConstrainedCase description
Palestinian Bitcoin holders in Gaza experienced a second consecutive year of severe infrastructure disruption. Banking systems remained non-functional across large areas, and internet connectivity was highly restricted. Bitcoin holdings in self-custody survived physically as long as seed phrase backups were retained, but transacting was impossible without internet access. Some Palestinian diaspora members had sent Bitcoin to family members in Gaza specifically because conventional remittance channels were non-functional—the Bitcoin arrived successfully on-chain but the recipients had no practical way to convert it to goods or services locally without functional exchange infrastructure.
Custody context
| Stress condition | Forced relocation |
| Custody system | Hardware wallet (single key) |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2025 |
| Country | Gaza / Palestine |
Structural dependencies observed
What this illustrates
Before anyone could access the funds, a legal process had to be completed first. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Publicly Reported
Evidence type
News article
Evidence link
Related cases involving forced relocation
91 cases involve forced relocation
274 cases involve hardware wallet (single key)
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This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
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Framework references
Where Bitcoin Custody Intersects Legal and Fiduciary Authority
Where custody creates gaps in estate planning, fiduciary duty, and professional responsibility.
Professional Scope Boundary Matrix
What each professional or product covers, what they do not, and where gaps form between them.
The Independent Assessment Layer in Bitcoin Custody
How independent diagnostic layers emerge when multiple parties depend on shared infrastructure.
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