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 attacker demanded 2 BTC per month.
Mobile or software wallet
A prominent Bitcoin podcaster was extorted in September 2019 by an attacker who claimed to have compromising personal information. The attacker demanded 2 BTC p
A Bitcoin investor died in July 2019 having purchased significant amounts in 2017–2018.
Mobile or software wallet
A Bitcoin investor died in July 2019 having purchased significant amounts in 2017–2018. Their will mentioned 'digital currency' but the executor — an accountant
They were threatened over a two-week period and ultimately transferred 4 BTC from
Mobile or software wallet
A July 2019 case describes a cryptocurrency exchange employee coerced by organised criminals who had identified the employee's role through LinkedIn. They were
Owner incapacity — software wallet 2019
Mobile or software wallet
A Bitcoin holder with advancing multiple sclerosis documented in June 2019 that they could no longer reliably type their wallet passphrase due to motor control
The flooding submerged a desktop computer containing their primary Bitcoin Core wallet.
Mobile or software wallet
A Bitcoin holder's home suffered a burst pipe in January 2019. The flooding submerged a desktop computer containing their primary Bitcoin Core wallet. Water dam
The victim transferred 3 BTC under duress before the attackers fled.
Mobile or software wallet
A cryptocurrency trader was targeted in January 2019 by attackers who had obtained their address from a compromised exchange database. The attackers appeared at
The wallet contained coins purchased during the 2016 price recovery.
Mobile or software wallet
A Bitcoin investor who had not accessed their wallet since 2016 found in January 2019 that they could not recall their passphrase. The wallet contained coins pu
Passphrase unavailable — software wallet 2019
Mobile or software wallet
A user who had used a street name from their childhood city as their passphrase in 2013 found in 2019 that the city had undergone major redevelopment and the st
Hidden wallet discovered — software wallet (2019)
Mobile or software wallet
A user whose laptop was stolen at a conference in February 2019 found that the thief had accessed their Bitcoin wallet before they could remotely wipe the machi
Passphrase unavailable — software wallet 2019
Mobile or software wallet
A forum case from February 2019 describes a user who had used the Wi-Fi password of a now-demolished building as their wallet passphrase. The property managemen
The physical coin was lost during a house move.
Mobile or software wallet
A Bitcoin user's wallet passphrase was based on the serial number of a physical Bitcoin they had purchased in 2013. The physical coin was lost during a house mo
Passphrase unavailable — software wallet (2019)
Mobile or software wallet
A user who had set their passphrase as an inside joke phrase shared with a former business partner found in March 2019 that the partner had died and no one else
Passphrase unavailable — software wallet 2019
Mobile or software wallet
A Bitcoin investor who had used a custom keyboard layout's key positions as a passphrase mnemonic in 2014 found in 2019 that they had switched keyboard layouts
A Bitcoin investor had their phone stolen from their car in April 2019.
Mobile or software wallet
A Bitcoin investor had their phone stolen from their car in April 2019. The phone's Bitcoin wallet app had a biometric lock but the thief used a physical finger
The Pi's SD card failed due to excessive write cycles in April 2019.
Mobile or software wallet
An April 2019 forum case describes a user who had stored their wallet on an old Raspberry Pi used as a home server. The Pi's SD card failed due to excessive wri
Owner death — software wallet 2019
Mobile or software wallet
An estate attorney documented an April 2019 case where the deceased had purchased Bitcoin during the 2017 bull run specifically for their grandchildren's inheri
Passphrase unavailable — software wallet 2019
Mobile or software wallet
A user documented in April 2019 that they had used a combination lock's opening sequence as their wallet passphrase. The combination lock had since been replace
The company had been dissolved and its registration records archived with Companies
Mobile or software wallet
An April 2019 forum case describes a user who had used their previous employer's company registration number as their passphrase. The company had been dissolved
Seed unavailable — software wallet (2019)
Mobile or software wallet
An April 2019 case describes a user who had stored their seed in a QR code engraved on a metal plate. The engraving was too fine and had worn away over several
Hidden wallet discovered — software wallet (2019)
Mobile or software wallet
A Bitcoin miner's old computer from 2011 was discovered in a self-storage unit in May 2019. The unit's climate control had failed at some point over the years,
Hidden wallet discovered — software wallet (2019)
Mobile or software wallet
A programmer found in May 2019 that their Bitcoin wallet passphrase, which had been stored as an environment variable in a shell configuration file, had been lo
Passphrase unavailable — software wallet 2019
Mobile or software wallet
A user found in May 2019 that their wallet passphrase had been generated by a web app that was no longer functional. They had saved only a screenshot of the set
Border confiscation — software wallet (2019)
Mobile or software wallet
A user's laptop was confiscated by customs officials at an international border in June 2019 as part of a financial investigation into a third party. The laptop
Passphrase unavailable — software wallet (2019)
Mobile or software wallet
A June 2019 case describes a user who created a wallet in 2013 using a passphrase based on lyrics from a song they had written themselves. The user could no lon
Passphrase unavailable — software wallet 2019
Mobile or software wallet
A user found in June 2019 that their old email, where they had stored their passphrase hint, had been acquired by a different service after the original provide
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