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 2018
Mobile or software wallet
An estate attorney documented a 2018 case where a living client had forgotten the passphrase to a wallet they had set up while recovering from surgery in 2014.
They could not recall the VIN and no documentation of the old car survived.
Mobile or software wallet
A Bitcoin investor who had used their first car's VIN number as their wallet passphrase found in September 2018 that the car had been scrapped and the VIN was n
A user stored their seed phrase in an encrypted file on Dropbox.
Mobile or software wallet
A user stored their seed phrase in an encrypted file on Dropbox. In September 2018 they discovered the Dropbox account had been compromised and all files delete
Seed unavailable — software wallet (2018)
Mobile or software wallet
A September 2018 case describes a user who had stored their seed in a secure notes app on their iPad. The app required iCloud synchronisation which had failed s
Device lost — software wallet 2018
Mobile or software wallet
A user who had stored their wallet exclusively in a browser-based wallet provider found in October 2018 that the provider had shut down without notice. The prov
Hidden wallet discovered — software wallet (2018)
Mobile or software wallet
An October 2018 estate case involved a deceased who had been a frequent poster on a Bitcoin forum. The estate found forum posts from 2012 discussing the purchas
Passphrase unavailable — software wallet 2018
Mobile or software wallet
A user who had used a passphrase generator website to create their wallet passphrase in 2015 found in October 2018 that the website had been taken down. They ha
Passphrase unavailable — software wallet (2018)
Mobile or software wallet
An October 2018 case describes a user who had set a passphrase derived from their car registration plate combined with their garage door PIN. Both the car and t
A cryptocurrency investor was kidnapped in November 2018 and held for two days.
Mobile or software wallet
A cryptocurrency investor was kidnapped in November 2018 and held for two days. The kidnappers demanded that the victim transfer all accessible Bitcoin. The vic
Device lost — software wallet (2018)
Mobile or software wallet
A user whose Bitcoin wallet existed only on a work laptop had the machine confiscated by their employer during a disciplinary proceeding in November 2018. The e
Device lost — software wallet 2018
Mobile or software wallet
A Bitcoin investor who stored their wallet on a business laptop had the machine remotely wiped by their IT department in November 2018 after the laptop was flag
Documentation absent — software wallet (2018)
Mobile or software wallet
A November 2018 estate case involved a deceased who had left a letter describing their cryptocurrency holdings as 'substantial.' The estate engaged a blockchain
Passphrase unavailable — software wallet (2018)
Mobile or software wallet
A November 2018 forum post describes a user who had used the final score of a specific sports match as their passphrase. They remembered the match and the appro
The friend had since lost touch with the user and could not be contacted.
Mobile or software wallet
A November 2018 forum post describes a user who had set their passphrase using a combination of two words from a secret language they invented with a childhood
The attacker demanded 2 BTC in exchange for not publishing the information.
Mobile or software wallet
A December 2018 documented case describes a cryptocurrency blogger who was blackmailed by someone who had obtained compromising information. The attacker demand
Passphrase unavailable — software wallet 2018
Mobile or software wallet
A developer who set up a Bitcoin Core wallet in 2012 using an unusual passphrase scheme based on binary representations of ASCII characters found in December 20
Seed unavailable — software wallet (2018)
Mobile or software wallet
An April 2018 case describes a user who had split their seed phrase across two documents stored at different locations. One copy was stored at a family member's
Owner incapacity — software wallet (2018)
Mobile or software wallet
A cryptocurrency trader with severe PTSD was admitted to an inpatient facility in June 2018 following a mental health crisis related in part to trading losses d
Estate access failure — software wallet (2018)
Mobile or software wallet
A July 2018 probate case involved a digital nomad who had Bitcoin holdings distributed across three wallets on devices in three countries. The estate took eight
Hidden wallet discovered — software wallet (2018)
Mobile or software wallet
A Bitcoin holder serving a short prison sentence found in August 2018 that their confiscated phone — which contained their primary wallet — had been factory-res
Multisig quorum failure — 3-of-5 multisig (2018)
Mobile or software wallet
A September 2018 case describes a corporate Bitcoin treasury in a 3-of-5 multisig where three key holders were arrested simultaneously in an unrelated regulator
Multisig quorum failure — software wallet (2018)
Mobile or software wallet
An October 2018 forum case describes a DAO-style investment club whose Bitcoin treasury was held in a multisig controlled by token votes. A software bug in the
Two key holders resigned in January 2018 following a major investor disagreement.
Mobile or software wallet
A cryptocurrency startup's treasury was held in a 3-of-5 multisig. Two key holders resigned in January 2018 following a major investor disagreement. The resigni
They had left a note saying 'Bitcoin for kids — see the email from Coinbase.'
Mobile or software wallet
An estate case from January 2018 involved a deceased who had purchased Bitcoin during the 2017 bull run specifically as an inheritance asset for their children.
A Bitcoin miner who died in May 2018 had accumulated coins since 2010.
Mobile or software wallet
A Bitcoin miner who died in May 2018 had accumulated coins since 2010. The estate found an old hard drive that blockchain analysis suggested had a wallet with s