Part of the CustodyStress archive of observed Bitcoin custody incidents
Hardware wallet (single key)
Cases in this category involve single-key hardware wallets. The device holds the private key offline. Recovery depends entirely on whether an independent seed phrase backup exists.
Hardware wallets appear in a large share of device-loss cases. The device itself is replaceable — the seed phrase restores access to any compatible wallet. Cases that resulted in blocked access share a common factor: no seed phrase backup existed, or the backup was stored with the device and lost alongside it.
274 observed cases
Blocked
100 (36%)
Constrained
47 (17%)
Survives
84 (31%)
Indeterminate
43 (16%)
Seed unavailable — hardware wallet (2017)
Hardware wallet (single key)
A June 2017 forum case describes a user who had stored their hardware wallet seed in a rented storage unit. The storage facility was condemned and demolished by
A kitchen fire melted the container and destroyed the card.
Hardware wallet (single key)
A user documented in July 2017 that their seed phrase card had been stored in a waterproof container they believed was fireproof. A kitchen fire melted the cont
The app was discontinued and deleted from app stores in 2016.
Hardware wallet (single key)
An October 2017 case describes a user who stored their seed phrase in an app designed for secure notes. The app was discontinued and deleted from app stores in
The Ledger device melted and the seed card was burned.
Hardware wallet (single key)
A Ledger Nano S user had their device and backup seed stored together in a small safe that was damaged in a house fire in November 2017. The Ledger device melte
Device stolen while travelling — hardware wallet (2017)
Hardware wallet (single key)
A hardware wallet user travelling over the Christmas 2017 period had their carry-on bag stolen at an airport. The bag contained their Ledger device, their seed
Device lost — Trezor (2017)
Hardware wallet (single key)
A Trezor user dropped their device into a drain while walking in a city centre in March 2017. The device fell into a storm drain and was unrecoverable. The seed
Seed unavailable — hardware wallet (2017)
Hardware wallet (single key)
A November 2017 case describes a user who had given one half of a split seed to their lawyer and kept the other half. The lawyer died suddenly and the law firm
The luggage was lost in transit by the airline.
Hardware wallet (single key)
A Trezor user relocated internationally in March 2017 and packed their hardware wallet in checked luggage. The luggage was lost in transit by the airline. The T
The 2048-word BIP39 wordlist meant 2048 possible completions needed to be checked.
Hardware wallet (single key)
A hardware wallet user who was upgrading devices in November 2016 found that their recovery seed was missing one word. They had recorded 23 of the 24 words. The
Seed phrase unavailable — hardware wallet 2016
Hardware wallet (single key)
A Ledger Nano S user lost their device in a move and attempted to restore using their seed phrase card. The card had been stored in a drawer and had accumulated
They moved offices and the filing cabinet was sent to a storage facility.
Hardware wallet (single key)
A Trezor user who set up their device in 2014 stored the recovery seed in a filing cabinet. In January 2016 they moved offices and the filing cabinet was sent t
The safe was destroyed in a house fire in March 2016.
Hardware wallet (single key)
A Trezor user had their device and the envelope containing their seed phrase both stored in the same home safe. The safe was destroyed in a house fire in March
The bank closed that branch and moved all safe deposit box contents to a central
Hardware wallet (single key)
A hardware wallet user had stored their seed in a sealed envelope in a bank safe deposit box. In July 2016 the bank closed that branch and moved all safe deposi
A Ledger Nano S user lost their device and attempted recovery using their seed.
Hardware wallet (single key)
A Ledger Nano S user lost their device and attempted recovery using their seed. They discovered the 24 words they had recorded were in a different order than ex
They suffered a hand injury that temporarily prevented biometric authentication
Hardware wallet (single key)
A hardware wallet user had stored their seed in a digital safe that required a biometric fingerprint to open. In May 2016 they suffered a hand injury that tempo
Device lost — hardware wallet 2016
Hardware wallet (single key)
A Trezor user inadvertently listed their hardware wallet in an online sale of miscellaneous electronics in September 2016. The device was shipped to the buyer b
When the company went through a redundancy process in June 2015, the user cleared their
Hardware wallet (single key)
A Trezor user who had purchased their device in early 2014 stored the seed phrase in their work notebook. When the company went through a redundancy process in
A Trezor user's house was burgled in January 2015.
Hardware wallet (single key)
A Trezor user's house was burgled in January 2015. The Trezor device was taken along with a fireproof document pouch that contained the recovery seed. Neither i
Device lost — hardware wallet 2015
Hardware wallet (single key)
A Trezor user documented their experience in April 2015: their device was destroyed when coffee was spilled on it. The recovery seed had been stored in a firepr
Border confiscation — Trezor (2015)
Hardware wallet (single key)
A Trezor user's device was confiscated by customs officers at an international border crossing in May 2015. The customs authority claimed the device could be us
A Ledger hardware wallet user lost their device in a house move in August 2015.
Hardware wallet (single key)
A Ledger hardware wallet user lost their device in a house move in August 2015. They had the recovery seed stored separately and were able to restore their wall
Passphrase unavailable — hardware wallet 2015
Hardware wallet (single key)
A user who had set a PIN on their Trezor device entered it incorrectly multiple times, triggering the device's progressive delay and eventual wipe after 16 inco
Device lost — hardware wallet 2014
Hardware wallet (single key)
A Bitcoin holder who purchased one of the first Trezor hardware wallets in 2014 stored their recovery seed in a safety deposit box in a bank that subsequently m
The drawer's contents were destroyed in the flood.
Hardware wallet (single key)
A 2014 forum case describes one of the earliest documented hardware wallet (Trezor, then newly released) loss incidents. A user's Trezor was damaged in a flood.
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