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%)
However, they also discovered the thief had attempted to access the stolen Ledger
Hardware wallet (single key)
A Ledger user whose device was stolen during a robbery in May 2021 found their seed was in a fireproof document pouch in their home. They recovered the wallet t
Seed phrase unavailable — hardware wallet 2021
Hardware wallet (single key)
A user's seed phrase was stored in a purpose-built metal wallet. The metal wallet was placed in a box labelled 'hardware receipts'. A family member sorting pape
Construction work in the area disturbed the ground and the container was not found
Hardware wallet (single key)
A user's seed card was laminated and placed in a waterproof container buried in a garden. In June 2021 construction work in the area disturbed the ground and th
The family member emigrated in September 2021 taking the seed fragment in their luggage.
Hardware wallet (single key)
A user's seed was split across two locations — one at home and one at a family member's property. The family member emigrated in September 2021 taking the seed
When they visited the bank in October 2021, the box could not be located.
Hardware wallet (single key)
A user's seed was stored in a sealed envelope inside a bank safe deposit box. When they visited the bank in October 2021, the box could not be located. Bank rec
The GPS coordinates recorded in their notes pointed to a now-inaccessible private
Hardware wallet (single key)
A user who had stored their seed in a time capsule — a sealed container buried with the intention of opening in 2030 — changed their mind in January 2021 and at
The cipher key was misremembered.
Hardware wallet (single key)
A user stored their 24-word seed in a custom grid encoded with a Caesar cipher. In March 2021 the cipher key was misremembered. Multiple offsets were tested ove
Their seed phrase was stored separately and used to recover funds to a new device
Hardware wallet (single key)
A Trezor owner's device was damaged when their bag was left in direct sunlight in a car during a heat wave in September 2021. The display was non-functional and
One relative had emigrated, one had died, and the third denied having the envelope.
Hardware wallet (single key)
A December 2020 estate case involves a living person who had distributed their seed phrase across three relatives for safekeeping. By December 2020 one relative
Seed unavailable — hardware wallet (2020)
Hardware wallet (single key)
A hardware wallet user whose device was bricked by a firmware update in January 2020 found that their seed phrase had been stored in a sealed envelope at a bank
Seed phrase unavailable — hardware wallet 2020
Hardware wallet (single key)
A user who had stored their seed phrase on a metal plate inside a concealed compartment in a piece of furniture sold the furniture in February 2020. They did no
Seed unavailable — hardware wallet (2020)
Hardware wallet (single key)
A user who had given their seed phrase to a trusted friend for safekeeping found in April 2020 that the friend had died from COVID-19. The friend's estate was u
The user ran the card through a paper shredder while clearing their desk, not realising
Hardware wallet (single key)
A user's seed phrase was written on the back of a business card. In October 2020 the user ran the card through a paper shredder while clearing their desk, not r
Device lost — Ledger Nano X (2020)
Hardware wallet (single key)
During a home move in March 2020, a Ledger Nano X was packed in a box that was subsequently lost by the removals company. The removals company confirmed the box
Seed unavailable — hardware wallet (2020)
Hardware wallet (single key)
A hardware wallet user's seed was stored in a safe deposit box at a bank that closed permanently in June 2020. The bank's liquidator sent box contents to addres
Seed phrase unavailable — hardware wallet 2020
Hardware wallet (single key)
A user who had split their seed phrase into two halves and stored each half at a different location found in September 2020 that one location — a rented storage
Device lost — hardware wallet 2020
Hardware wallet (single key)
A Trezor user discovered in November 2020 that their device had been replaced by a fake in the retail packaging they had purchased. The counterfeit device had a
Documentation absent — hardware wallet (2020)
Hardware wallet (single key)
When Ledger's July 2020 customer data was published in December 2020, 272,000 customers found their home addresses, phone numbers, and order details publicly av
Device stolen — hardware wallet (2020)
Hardware wallet (single key)
A user stored their seed in a fireproof safe that was stolen during a home burglary in May 2020. The thieves opened the safe using a cutting tool. The seed card
Device lost — hardware wallet 2020
Hardware wallet (single key)
A Trezor user had their home flooded by a burst pipe in February 2020 while they were on holiday. Their hardware device and seed phrase paper backup were both o
Due to COVID-19 restrictions, the manufacturer's facility was closed for six weeks.
Hardware wallet (single key)
A hardware wallet user's device was shipped to a manufacturer for repair of a firmware issue in May 2020. Due to COVID-19 restrictions, the manufacturer's facil
The data was published on Raidforums in December 2020.
Hardware wallet (single key)
Ledger, the hardware wallet manufacturer, suffered a database breach in July 2020 exposing the personal information of approximately 272,000 customers including
Device lost — hardware wallet 2019
Hardware wallet (single key)
A user discovered in December 2019 that their hardware wallet, stored in a fireproof box, had been exposed to temperatures that exceeded the device's operationa
The email provider terminated the account for suspected spam activity in March 2019.
Hardware wallet (single key)
A user's hardware wallet seed was stored in a scanned PDF in an email attachment sent to themselves for safekeeping. The email provider terminated the account f
Seed unavailable — hardware wallet (2019)
Hardware wallet (single key)
A user who had stored their hardware wallet seed in an encrypted email draft found in April 2019 that the email provider had closed their account for inactivity
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