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%)
Forced relocation — software wallet (2021)
Mobile or software wallet
Following China's June 2021 comprehensive Bitcoin ban, Chinese Bitcoin holders who had kept BTC on Chinese exchanges were required to close their accounts. Exch
The scrapping records and DVLA records showed only the current registered keeper of
Mobile or software wallet
A Bitcoin trader's passphrase was based on the name and registration number of a vehicle they had owned in 2013. The vehicle had been written off and scrapped.
Seed phrase unavailable — software wallet 2021
Mobile or software wallet
A user who had stored their seed phrase using a steganographic method in a series of photos found in July 2021 that a social media platform's automated content
When the MacBook's SSD failed, the wallet was unrecoverable from iCloud.
Mobile or software wallet
A user found in August 2021 that their old MacBook had failed to iCloud-backup the wallet app's data folder because the folder had been inadvertently added to t
Forced relocation — software wallet (2021)
Mobile or software wallet
Iran's government ordered licensed Bitcoin mining operations to shut down temporarily in August 2021 to address electricity shortages during peak summer demand.
Their GitHub archive from that period was incomplete.
Mobile or software wallet
A programmer's wallet passphrase was the hash of a function they had written in 2013. By 2021 they could not recall which function they had hashed or the exact
Physical coercion — software wallet (2021)
Mobile or software wallet
A September 2021 case from the Ledger breach follow-up wave describes a Bitcoin holder who received a letter at their home address — obtained from the breach —
Passphrase unavailable — software wallet 2021
Mobile or software wallet
A Bitcoin developer found in September 2021 that a passphrase stored in a text file had been overwritten when they accidentally saved an empty document to the s
Passphrase unavailable — software wallet (2021)
Mobile or software wallet
A November 2021 case describes a user whose passphrase was the full name of a minor celebrity known from a niche hobby community. The celebrity had changed thei
Seed unavailable — software wallet (2021)
Mobile or software wallet
A November 2021 case describes a user who had photographed their seed phrase using a camera purchased specifically for that purpose. The camera was later sold s
Passphrase unavailable — software wallet (2021)
Mobile or software wallet
A December 2021 case describes a user who had set their wallet passphrase to a phrase from a private email they had sent in 2013. The email had been archived bu
The user's account was not migrated and the half of the seed stored there was lost.
Mobile or software wallet
A December 2021 case describes a user who had stored their seed across two halves in two separate password managers. One password manager was acquired by a thir
Among items taken was a USB drive containing a wallet backup.
Mobile or software wallet
A Bitcoin holder's apartment was burgled in February 2021. Among items taken was a USB drive containing a wallet backup. The USB was separately stored from the
One key holder was hospitalised and a second was unreachable following a personal
Mobile or software wallet
A Bitcoin startup used a 2-of-3 multisig. In February 2021, one key holder was hospitalised and a second was unreachable following a personal emergency. The thi
The surge damaged both the laptop and two USB drives connected to the hub.
Mobile or software wallet
A developer's laptop was struck by lightning via a connected USB hub in July 2021. The surge damaged both the laptop and two USB drives connected to the hub. Bo
Device lost — software wallet 2021
Mobile or software wallet
A user found their old Android phone — stored as a cold wallet — had been formatted by Google's security policies after 24 months of inactivity. They had not en
Device lost — software wallet 2021
Mobile or software wallet
A user's old Samsung phone, kept solely as a cold wallet device, was accidentally put through a laundry cycle in October 2021. The phone was non-functional. The
Device lost — software wallet 2021
Mobile or software wallet
A user found in April 2021 during the BTC price peak that their old wallet, created in 2014, was on a hard drive they had been unable to locate. The hard drive
Passphrase unavailable — software wallet 2021
Mobile or software wallet
A user found in September 2021 that they had created two different wallets with similar but distinct passphrases in 2013. They had since merged their notes and
Passphrase unavailable — software wallet 2021
Mobile or software wallet
A Bitcoin investor who had created a wallet during the COVID lockdowns of 2020 found in January 2021 that their passphrase, created while under significant stre
Passphrase unavailable — software wallet 2021
Mobile or software wallet
A Bitcoin holder who had used a passphrase derived from a mathematical constant to an unusual number of decimal places found in February 2021 they could no long
They were forced to sign three transactions totalling 2.1 BTC.
Mobile or software wallet
A cryptocurrency trader was targeted in March 2021 by attackers who had purchased the Ledger database from Raidforums. They received threatening voice calls, th
Multisig quorum failure — software wallet 2021
Mobile or software wallet
A Bitcoin investment collective using a 3-of-5 multisig faced a quorum crisis in March 2021 when two key holders dissolved their partnership under acrimonious c
The password manager account was locked due to suspicious activity detection in April
Mobile or software wallet
A user who had set an exceptionally secure passphrase in 2016 — a 40-character random string — stored it only in their password manager. The password manager ac
A Bitcoin investor was diagnosed with early-stage Alzheimer's in May 2021.
Mobile or software wallet
A Bitcoin investor was diagnosed with early-stage Alzheimer's in May 2021. They had accumulated significant holdings over the preceding years. Working with thei
Translate