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%)
Documentation absent — software wallet (2017)
Mobile or software wallet
An October 2017 estate case involved a deceased who had purchased Bitcoin through multiple methods — an exchange, a mining pool, and several ATMs — over four ye
PayPal's forced password reset cycle had since caused them to change the PayPal
Mobile or software wallet
A user documented in October 2017 that they had used their old PayPal password as their Bitcoin Core wallet passphrase in 2012. PayPal's forced password reset c
Passphrase unavailable — software wallet (2017)
Mobile or software wallet
An October 2017 forum case describes a user who had encoded their passphrase in a personal shorthand cipher. By 2017 they had forgotten the cipher key. The nota
The individuals attended the victim's home address and demanded Bitcoin at gunpoint.
Mobile or software wallet
A Bitcoin holder was approached by individuals who had obtained their identity from a compromised exchange database in November 2017. The individuals attended t
No backup had been made since the wallet was created in 2014.
Mobile or software wallet
A user who had kept their primary wallet on a dedicated air-gapped laptop found in November 2017 that the laptop's hard drive had failed silently. When they att
An estate case from November 2017 involved a deceased who had held Bitcoin since 2011.
Mobile or software wallet
An estate case from November 2017 involved a deceased who had held Bitcoin since 2011. The estate located seven wallet files across various old computers. Six w
Passphrase unavailable — software wallet 2017
Mobile or software wallet
A user found in November 2017 that they had misremembered a critical character in their wallet passphrase. After exhausting all memorable variants, they engaged
Passphrase unavailable — software wallet 2017
Mobile or software wallet
A Bitcoin holder who had generated a passphrase using an online entropy tool in 2013 found in November 2017 that the tool had changed its output format in a sub
Owner death — software wallet 2017
Mobile or software wallet
An estate case from December 2017 involved a deceased whose will listed 'digital assets including Bitcoin' without specifying where they were held. The estate s
Passphrase unavailable — software wallet 2017
Mobile or software wallet
A user in December 2017 discovered their wallet passphrase hint—stored on a sticky note—had faded completely over four years of sunlight exposure. The hint had
Passphrase unavailable — software wallet 2017
Mobile or software wallet
A user found in December 2017 that they had stored only the first three characters of their passphrase as a 'hint' in a notes file. They remembered the passphra
Border confiscation — software wallet (2017)
Mobile or software wallet
A Bitcoin holder had their mobile wallet device confiscated by customs officers at an international crossing in January 2017. The officials suspected the device
Owner incapacity — software wallet (2017)
Mobile or software wallet
A Bitcoin trader suffered a traumatic brain injury in March 2017 and lost memory of their wallet passphrase. The wallet contained coins accumulated over four ye
Forced relocation — software wallet (2017)
Mobile or software wallet
A Venezuelan Bitcoin holder attempting to relocate to Argentina in April 2017 had their phone seized at the Venezuelan border by security officials. The phone c
Documentation absent — software wallet (2017)
Mobile or software wallet
The Bitcoin Cash hard fork on 1 August 2017 created a situation where holders of BTC in wallets that had not been updated were uncertain whether they could safe
Multisig quorum failure — 2-of-3 multisig (2017)
Mobile or software wallet
An October 2017 forum case describes a three-person Bitcoin partnership that held funds in a 2-of-3 multisig. One partner died suddenly, leaving the surviving t
The attorney retired suddenly in November 2016 and transferred their practice.
Mobile or software wallet
A Bitcoin escrow arrangement for a business acquisition used a 2-of-3 multisig. One key was held by the buyer, one by the seller, and one by an escrow attorney.
The victim transferred approximately 10 BTC under duress before escaping.
Mobile or software wallet
A November 2016 forum case describes a Bitcoin investor kidnapped and held for 36 hours by people who demanded access to their exchange accounts and hardware wa
Seed phrase unavailable — software wallet 2016
Mobile or software wallet
A user whose seed phrase was stored in a fireproof safe found the safe's combination had been changed by a locksmith who had serviced it the previous year. The
Documentation absent — software wallet 2016
Mobile or software wallet
An estate attorney documented a 2016 case where a client's deceased relative had left a handwritten note in their will addendum referencing 'forty coins on the
Device lost — software wallet 2016
Mobile or software wallet
A Bitcoin investor sent their old laptop for recycling in January 2016 without wiping the drive. They realised weeks later that the wallet was still on the hard
Passphrase unavailable — software wallet 2016
Mobile or software wallet
A user who had set their Bitcoin Core wallet passphrase in 2013 using a phrase from a personal journal found in January 2016 that the journal had been discarded
Passphrase unavailable — software wallet 2016
Mobile or software wallet
A user who had set their wallet passphrase based on a childhood address found in January 2016 that the street had been renamed as part of urban redevelopment. T
The Bitcoin price had risen to above $400 by the time of the theft, making the loss
Mobile or software wallet
A Bitcoin holder whose primary wallet was on a laptop had the machine stolen from their car in February 2016. The laptop contained the only copy of the wallet.d
Device lost — software wallet 2016
Mobile or software wallet
A user who kept their primary wallet on an iPad had the device taken by an airport security officer at an international checkpoint in February 2016. The device