Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01045
Device discarded — hardware wallet (2022)
BlockedCase description
Chainalysis estimated in a 2022 report that approximately 3.7 million Bitcoin—roughly 17% of the total supply—was permanently lost, with owner death being one of the primary contributing factors alongside forgotten passwords and discarded hardware. As Bitcoin's holder base aged, the annual flow of Bitcoin into inaccessible wallets due to owner death increased proportionally. Estate attorneys estimated that a significant portion of the approximately 200,000 Bitcoin that became permanently inaccessible each year was attributable to holders dying without documented recovery procedures.
Custody context
| Stress condition | Owner death |
| Custody system | Hardware wallet (single key) |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | International |
Structural dependencies observed
What this illustrates
There was only one way in. When that path was gone, so was access. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
News article
Related cases involving owner death
119 cases involve owner death
274 cases involve hardware wallet (single key)
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This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
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Framework references
Where Bitcoin Custody Intersects Legal and Fiduciary Authority
Where custody creates gaps in estate planning, fiduciary duty, and professional responsibility.
Professional Scope Boundary Matrix
What each professional or product covers, what they do not, and where gaps form between them.
The Independent Assessment Layer in Bitcoin Custody
How independent diagnostic layers emerge when multiple parties depend on shared infrastructure.
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