Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01410
The specialist was able to identify the correct derivation path and successfully
SurvivesCase description
A September 2025 Bitcoin estate case involved a California holder who had stored their seed phrase in a physical vault at a bank branch. The vault had been opened correctly by the executor, and the seed phrase was present and legible. However, the executor—an attorney with no technical knowledge of Bitcoin—did not know how to use the seed phrase. After engaging a blockchain specialist, it was determined the seed phrase was for an Electrum wallet with a non-standard derivation path. The specialist was able to identify the correct derivation path and successfully restored access to 4.1 BTC worth approximately $380,000 at September 2025 prices.
Custody context
| Stress condition | Owner death |
| Custody system | Hardware wallet (single key) |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2025 |
| Country | United States |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
Source
Privately 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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