Part of the CustodyStress archive of observed Bitcoin custody incidents
Mobile or software wallet
Cases in this category involve mobile apps and desktop software wallets. Recovery depends entirely on whether a seed phrase backup was made and stored independently of the device.
Mobile and software wallets are the most frequently observed custody system in this archive, reflecting their widespread use. The structural risk is consistent: where a seed phrase backup was created and stored independently of the device, recovery was possible. Where no backup existed, loss of the device meant permanent loss of access.
572 observed cases
Blocked
405 (71%)
Constrained
44 (8%)
Survives
118 (21%)
Indeterminate
5 (1%)
Passphrase unavailable — software wallet (2025)
Mobile or software wallet
A 2025 case involved a Samourai Wallet user who had set a BIP39 passphrase and used the wallet's privacy features. The wallet had been on a phone that died with
Passphrase unavailable — software wallet (2025)
Mobile or software wallet
A 2025 case involved a MetaMask wallet user who had set a custom password for their wallet but could not recall it after a phone factory reset and reinstallatio
The funds—approximately $18,000 in Bitcoin—were inaccessible.
Mobile or software wallet
A 2024 case involved a Trust Wallet user who had migrated to a new phone and attempted to restore their wallet using a seed phrase saved in a notes app. The see
Passphrase unavailable — Coinbase (2024)
Mobile or software wallet
A 2024 Coinbase Wallet user attempted to restore their wallet to a new phone after their old phone was damaged beyond repair. Coinbase Wallet is a self-custody
The deceased had used a complex PIN that family members did not know.
Mobile or software wallet
A mobile wallet user inherited a phone from a deceased relative in 2023. The phone contained a running Bitcoin wallet app with a visible balance, but the phone'
Passphrase unavailable — software wallet (2023)
Mobile or software wallet
A Trust Wallet user who had set up their wallet in 2021 and used a 6-digit PIN attempted to access their wallet in 2023 after getting a new phone. Trust Wallet'
The original Bitcoin remained on-chain but inaccessible, with no recovery path
Mobile or software wallet
A user who had purchased Bitcoin through a mobile wallet app in 2021 and never written down the seed phrase attempted to access funds in November 2023. A phone
A recovery service confirmed that recovering a 12-word BIP39 seed with 2 unknown words
Mobile or software wallet
A Bitcoin wallet user discovered in April 2022 that their seed phrase backup—written on paper and stored in a home fireproof box—had been partially destroyed by
And into 2022, a gang of London teenagers conducted a spree of knifepoint robberies
Mobile or software wallet
In late 2021 and into 2022, a gang of London teenagers conducted a spree of knifepoint robberies specifically targeting cryptocurrency holders. The gang stole o
The Bitcoin, acquired in 2020 during the initial lockdown period, was permanently
Mobile or software wallet
A Bitcoin mobile wallet user lost access to their funds in 2022 when their phone was stolen and simultaneously discovered they had not backed up their seed phra
A Bitcoin holder died in December 2021 near the all-time high.
Mobile or software wallet
A Bitcoin holder died in December 2021 near the all-time high. The family knew about their Bitcoin holdings but not their value. A blockchain forensics firm ide
A user's laptop was confiscated as part of a divorce proceeding in December 2021.
Mobile or software wallet
A user's laptop was confiscated as part of a divorce proceeding in December 2021. The estranged spouse's attorney obtained a court order for access to the devic
Passphrase unavailable — software wallet 2021
Mobile or software wallet
A user whose passphrase incorporated the mileage displayed on a specific vehicle on a specific date found in November 2021 that the vehicle's odometer records h
The estate identified 23 different wallet addresses with total holdings estimated at
Mobile or software wallet
A Bitcoin miner who had been operating since 2013 died in November 2021. The estate identified 23 different wallet addresses with total holdings estimated at ov
Multisig quorum failure — software wallet 2021
Mobile or software wallet
A Bitcoin inheritance structure using a 3-of-5 multisig faced an unintended lockout in November 2021. The grantor updated the trust structure but the legal upda
A November 2021 estate case involved a recently deceased Bitcoin day trader.
Mobile or software wallet
A November 2021 estate case involved a recently deceased Bitcoin day trader. The trader had documented their trading activity meticulously but had never recorde
Device lost — software wallet 2021
Mobile or software wallet
A Bitcoin holder was detained at an airport in November 2021 and their devices were searched by border officials. During the search, a customs officer accidenta
Passphrase unavailable — software wallet 2021
Mobile or software wallet
A Bitcoin holder who had used a favourite chess opening's name as their passphrase found in October 2021 that the opening had two common English translations. O
Passphrase unavailable — software wallet 2021
Mobile or software wallet
A user found in October 2021 that their wallet passphrase was the name of a dog they had owned in 2012 combined with its birth year. The dog had been a gift and
One key holder relocated to a country under US sanctions in October 2021.
Mobile or software wallet
An October 2021 case describes a family Bitcoin trust using a 2-of-3 multisig. One key holder relocated to a country under US sanctions in October 2021. The rem
During this period, an exchange account's time-limited feature removed their premium
Mobile or software wallet
A Bitcoin investor suffered a debilitating depressive episode in September 2021 and was unable to manage their financial affairs for four months. During this pe
One UK-based Ledger customer was forcibly detained at their home for several hours
Mobile or software wallet
Following the continued publication of the Ledger breach data in January 2021, a wave of physical kidnapping threats arrived at Ledger customers' homes. Several
Device lost — software wallet 2021
Mobile or software wallet
A Bitcoin holder who had accumulated coins during the 2020 bull run found in January 2021 that their phone had been reset to factory defaults after being traded
A Bitcoin holder who had purchased BTC in late 2020 died suddenly in January 2021.
Mobile or software wallet
A Bitcoin holder who had purchased BTC in late 2020 died suddenly in January 2021. The estate found a hardware wallet but no seed phrase. The PIN was unknown. T
Passphrase unavailable — software wallet (2021)
Mobile or software wallet
The widely-reported case of Stefan Thomas, a Bitcoin developer with 7,002 BTC on an IronKey encrypted drive, reached public attention in January 2021. Thomas co
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