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
45 (16%)
Survives
86 (31%)
Indeterminate
43 (16%)
This targeting of family members foreshadowed the much higher-profile Ledger founder
Hardware wallet (single key)
In late 2024, French police investigated a series of physical attacks targeting cryptocurrency holders and their family members in Paris and surrounding regions
Seed unavailable — Coldcard (2024)
Hardware wallet (single key)
A recovery case in early 2024 involved a Coldcard hardware wallet whose seed phrase had been stored as a cryptic reference in the holder's email—not the phrase
Thai police arrested five Russian men in Phuket following the kidnapping of
Hardware wallet (single key)
In February 2024, Thai police arrested five Russian men in Phuket following the kidnapping of a Belarusian couple. The suspects had abducted the couple and comp
Two women were arrested in Hong Kong for allegedly kidnapping a three-year-old child
Hardware wallet (single key)
In July 2024, two women were arrested in Hong Kong for allegedly kidnapping a three-year-old child and demanding a ransom of over HK$5 million in cryptocurrency
Owner death — hardware wallet 2024
Hardware wallet (single key)
An estate case described by a digital asset attorney in early 2024 involved a holder who had used a brain wallet—a private key derived deterministically from a
Device lost — Ledger Nano X (2024)
Hardware wallet (single key)
A 2024 case involved a Ledger Nano X that had been sent for electronics recycling by a family member who didn't recognise it as a Bitcoin wallet. The holder's s
The addresses were identified but showed zero balance—the Bitcoin had been moved to
Hardware wallet (single key)
A North Carolina estate attorney described a 2024 case involving a deceased holder whose estate included an undocumented Bitcoin position only discovered when r
The traveller was returning from a trip and was carrying a Trezor in their carry-on
Hardware wallet (single key)
A documented 2024 case involved a US customs seizure of a hardware wallet at a border crossing. The traveller was returning from a trip and was carrying a Trezo
Device lost — Trezor (2024)
Hardware wallet (single key)
A 2024 case involved a traveller whose luggage—including a Trezor Model One hardware wallet—was lost by an airline. The holder had their seed phrase documented
Estate access failure — hardware wallet (2024)
Hardware wallet (single key)
A 2024 probate case in California involved a deceased holder whose will mentioned 'Bitcoin in a cold wallet' as part of their estate. The executor located three
LastPass had suffered a major breach in 2022 in which encrypted vault data was stolen.
Hardware wallet (single key)
A 2024 Canadian probate case involved a holder who had documented their custody arrangements thoroughly—seed phrase on paper, hardware wallet location, exchange
Estate access failure — hardware wallet (2024)
Hardware wallet (single key)
A 2024 UK probate case described by a digital asset estate specialist involved a deceased holder who had stored their Bitcoin seed phrase as a LUKS-encrypted fi
The holder retained their seed phrase backups, meaning the Bitcoin could theoretically
Hardware wallet (single key)
A 2024 civil forfeiture case involved US federal agents seizing two hardware wallets during a search warrant execution. The wallets were listed as seized proper
Owner incapacity — hardware wallet (2024)
Hardware wallet (single key)
A 2024 case documented by a digital asset recovery firm involved a holder who had suffered a traumatic brain injury and retained no memory of having owned Bitco
Destroyed in flood — Coldcard (2024)
Hardware wallet (single key)
A 2024 flood in Central Europe destroyed the home of a Bitcoin holder, including their Coldcard hardware wallet and the paper seed phrase backup that had been s
Documentation absent — hardware wallet (2024)
Hardware wallet (single key)
A 2024 recovery attempt involved a Bitcoin holder who had purchased 1.5 BTC through a peer-to-peer platform in 2019 and stored the private key as a QR code tatt
Owner death — hardware wallet (2024)
Hardware wallet (single key)
A 2024 case involved a Florida estate where the deceased had left detailed estate planning documents—a formal Bitcoin inheritance letter, device locations, and
Documentation absent — hardware wallet (2024)
Hardware wallet (single key)
A 2024 report by an estate planning firm noted a dramatic increase in inquiries from families of deceased Bitcoin holders as Bitcoin's price exceeded $100,000.
Owner incapacity — hardware wallet (2024)
Hardware wallet (single key)
A 2024 case involved an 82-year-old Bitcoin holder diagnosed with Alzheimer's who had held Bitcoin since 2016. Their son held power of attorney but did not know
Owner death — 2-of-3 multisig (2024)
Hardware wallet (single key)
A 2024 case involved a Bitcoin holder who had been meticulous about security but had not planned for incapacity or death. They had used a 2-of-3 multisignature
Multisig quorum failure — hardware wallet (2024)
Hardware wallet (single key)
A 2024 Casa multisignature custody case involved a 2-of-3 setup where the holder's mobile key was stored on a phone that had been factory-reset after the holder
Hidden wallet discovered — hardware wallet (2024)
Hardware wallet (single key)
Bitcoin holders in Gaza who had adopted cryptocurrency as protection against financial instability during the 2023-2024 conflict found their Bitcoin technically
Forced relocation — hardware wallet (2024)
Hardware wallet (single key)
Bitcoin holders in Myanmar displaced by the ongoing civil conflict following the 2021 military coup continued to face practical access barriers in 2024. Areas u
Physical coercion — hardware wallet (2024)
Hardware wallet (single key)
In Brazil, a crypto trader's mother was kidnapped and held captive until her son paid a ransom of five Bitcoin. Four people were arrested following the payment
Passphrase unavailable — hardware wallet (2024)
Hardware wallet (single key)
A 2024 Keepkey hardware wallet case involved a device that had been in storage for four years. The holder had set a device PIN that they could not recall. The K
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