Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01249
The holder retained their seed phrase backups, meaning the Bitcoin could theoretically
ConstrainedCase description
A 2024 civil forfeiture case involved US federal agents seizing two hardware wallets during a search warrant execution. The wallets were listed as seized property in the warrant inventory. The holder was not charged with any crime related to the seized wallets. The wallets were held as evidence in an unrelated investigation. The holder retained their seed phrase backups, meaning the Bitcoin could theoretically be restored to new devices—but doing so would create new addresses on the blockchain identical to the seized addresses, potentially appearing to be an attempt to move evidence. The holder waited for the return of the physical devices through the civil asset return process, which took approximately six months.
Custody context
| Stress condition | Legal or authority constraint |
| Custody system | Hardware wallet (single key) |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2024 |
| Country | United States |
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 legal or authority constraint
39 cases involve legal or authority constraint
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.