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%)
The storage unit was broken into in October 2015 and the drive was stolen along
Mobile or software wallet
A long-term Bitcoin holder stored their wallet.dat on an external hard drive kept in a storage unit. The storage unit was broken into in October 2015 and the dr
The phone was lost in 2014 and the cloud backup had not included voice memos.
Mobile or software wallet
A 2015 case documents a user who had backed up their wallet passphrase as a voice memo on a mobile phone. The phone was lost in 2014 and the cloud backup had no
They had traveled to 12 countries that year.
Mobile or software wallet
A Bitcoin holder documented in October 2015 that their wallet passphrase had been set during a period of heavy travel and likely included the name of a city or
Device lost — software wallet 2015
Mobile or software wallet
A developer who had written a custom Bitcoin wallet in 2011 and kept coins in it for years discovered in 2015 that the application was no longer compatible with
Device lost — software wallet (2015)
Mobile or software wallet
A documented November 2015 case describes a user who kept their wallet on a tablet that was destroyed when their car was broken into and the bag containing the
Owner incapacity — software wallet (2015)
Mobile or software wallet
A November 2015 forum case describes a user with a progressive neurological condition who had begun to lose fine motor control. They had stored their wallet pas
Passphrase unavailable — software wallet (2015)
Mobile or software wallet
An early Bitcoin forum member who had held BTC since 2011 attempted to decrypt their encrypted wallet in November 2015 ahead of an anticipated price rise. They
The family member moved homes and lost the sealed envelope containing the seed during
Mobile or software wallet
A 2015 forum case describes a user who had entrusted their hardware wallet seed to a trusted family member for safekeeping. The family member moved homes and lo
The confiscation lasted 90 days while authorities investigated a suspected customs
Mobile or software wallet
A Bitcoin holder who was detained at an international border had their mobile phone examined by border agents who discovered and confiscated a hardware wallet f
They had updated every PIN except the one they could not recall: the wallet passphrase
Mobile or software wallet
A user who had set their wallet passphrase to a personal PIN code they used for everything discovered in December 2015 that they had changed all their PINs foll
Estate access failure — Electrum (2015)
Mobile or software wallet
A 2015 probate case involved a user who had created an Electrum wallet in 2013 and stored the 12-word seed in a safety deposit box at a bank. When the user died
Estate access failure — software wallet (2015)
Mobile or software wallet
A probate attorney documented a 2015 case in which a client's estate included references to Bitcoin on personal computers but no documentation of which software
Multisig quorum failure — 2-of-3 multisig (2015)
Mobile or software wallet
A 2015 case documents a Bitcoin attorney escrow arrangement where a 2-of-3 multisig was used with the attorney holding one of the three keys. When the attorney
Multisig quorum failure — 2-of-3 multisig (2015)
Mobile or software wallet
A November 2015 forum case documents a Bitcoin business where three co-founders each held one key of a 2-of-3 multisig treasury. When two of the three co-founde
A Syrian refugee who had stored Bitcoin as portable wealth fled their country in 2015.
Mobile or software wallet
A Syrian refugee who had stored Bitcoin as portable wealth fled their country in 2015. Their mobile phone was confiscated at a border crossing. The phone contai
Documentation absent — software wallet 2015
Mobile or software wallet
A 2015 estate case involved a man who had created paper wallets for each of his three children as gifts but had kept no record of which child was to receive whi
The two corrupted words had multiple plausible BIP39 substitutions requiring
Mobile or software wallet
A user who had engraved their 24-word seed onto a stainless-steel plate hired a welder to do the engraving. The welder made a transcription error on two words,
When they attempted recovery in 2015 the seed failed.
Mobile or software wallet
A forum case documents a user who stored their seed phrase in a metal plate they had engraved themselves. The engraving was done in a hurry and two words were m
The legal firm dissolved in September 2014.
Mobile or software wallet
A 2014 Bitcoin escrow startup used a 2-of-3 multisig where the third key was managed by a legal firm acting as arbiter. The legal firm dissolved in September 20
Seed phrase unavailable — software wallet 2014
Mobile or software wallet
A user who had set up a paper wallet in 2013 stored the seed words in a safe deposit box. When the bank branch housing the safe deposit box was closed and conso
The holder had no ability to access or protect their BTC during the seizure period.
Mobile or software wallet
A Bitcoin holder whose phone was seized at customs during international travel in August 2014 had no secondary access to their wallet. The phone was held for ex
Owner incapacity — software wallet 2014
Mobile or software wallet
A Bitcoin miner who suffered a stroke in July 2014 had their entire wallet infrastructure on an air-gapped laptop in their home office. Family members who neede
Passphrase unavailable — software wallet 2014
Mobile or software wallet
A forum post from February 2014 documents a user who had set their wallet passphrase using a keyboard pattern they associated with a physical gesture. Following
When the laptop was stolen in January 2014, they realised they had never enabled
Mobile or software wallet
A user who had been mining Bitcoin since 2010 stored their accumulated wallet on an old laptop. When the laptop was stolen in January 2014, they realised they h
Passphrase unavailable — software wallet 2014
Mobile or software wallet
A user who had set their wallet passphrase to a combination of two family members' names and birthdates could not recall, three years later, which name came fir
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