Part of the CustodyStress archive of observed Bitcoin custody incidents
Owner incapacity
Cases in this category involve Bitcoin held by an owner who became incapacitated. The owner was unable to direct access, and no pre-arranged recovery procedure was in place.
Owner incapacity cases often involve time-sensitive access requirements that existing custody structures were not designed to meet. Medical emergencies, cognitive decline, and incarceration all produce situations where the owner cannot act and no pre-arranged recovery procedure exists. Cases frequently reveal that setups described as having a designated recovery person had not been tested or documented in sufficient detail for that person to act.
68 observed cases
Blocked
20 (29%)
Constrained
7 (10%)
Survives
35 (51%)
Indeterminate
6 (9%)
The exchange account held approximately $120,000 in Bitcoin.
Exchange custody
A 2025 case described by a California elder law attorney involved a 74-year-old Bitcoin exchange user whose cognitive decline had reached the point where they c
Owner incapacity — Coinbase (2025)
Exchange custody
A 2025 UK elder care case involved an 81-year-old Coinbase user diagnosed with vascular dementia whose cognitive decline had progressed to the point where they
Owner incapacity — hardware wallet (2025)
Hardware wallet (single key)
A 2025 incapacity planning case involved a Bitcoin holder with a traumatic brain injury sustained in 2024 who had regained significant cognitive function but re
In most US states that have adopted RUFADAA, a durable power of attorney does cover
Hardware wallet (single key)
A 2025 case involved a holder who had suffered a severe stroke that left them unable to communicate or perform fine motor tasks. Their durable power of attorney
Owner incapacity — hardware wallet (2025)
Hardware wallet (single key)
A 2025 UK court case heard by the Court of Protection addressed whether a Bitcoin holder with late-stage multiple sclerosis had sufficient mental capacity to ma
Owner incapacity — hardware wallet (2025)
Hardware wallet (single key)
A 2025 case involved a holder diagnosed with early-stage Parkinson's disease who had begun experiencing tremors that made touchscreen interaction with their mob
Owner incapacity — hardware wallet (2024)
Hardware wallet (single key)
A 2024 case documented by a digital asset recovery firm involved a holder who had suffered a traumatic brain injury and retained no memory of having owned Bitco
Owner incapacity — hardware wallet (2024)
Hardware wallet (single key)
A 2024 case involved an 82-year-old Bitcoin holder diagnosed with Alzheimer's who had held Bitcoin since 2016. Their son held power of attorney but did not know
Owner incapacity — exchange custody (2024)
Exchange custody
A UK elder law solicitor described a 2024 case involving a 78-year-old Binance user who had suffered a stroke and could no longer use a smartphone—necessary for
Owner incapacity — Coinbase (2024)
Exchange custody
A 2024 power of attorney case in Texas involved a family attempting to access the Coinbase account of an incapacitated relative. The family held a durable POA t
Owner incapacity — hardware wallet (2024)
Hardware wallet (single key)
A 2024 case involved a Bitcoin holder who had been in a coma following a traffic accident for three months. The holder had self-custody Bitcoin on a hardware wa
Owner incapacity — Coldcard (2024)
Hardware wallet (single key)
A 2024 case involved a Bitcoin holder who was diagnosed with early-stage dementia and sought to establish a succession plan for their self-custody holdings befo
Hidden wallet discovered — hardware wallet (2023)
Hardware wallet (single key)
A North Carolina family in 2023 sought to access Bitcoin held by an incapacitated relative who had a self-custody setup. They had a durable power of attorney (P
Owner incapacity — hardware wallet 2023
Hardware wallet (single key)
A family in 2023 sought to access a hardware wallet belonging to a relative who had suffered a severe stroke and was in a long-term care facility with no prospe
Owner incapacity — Kraken (2023)
Exchange custody
A family member acting under a durable power of attorney for an incapacitated Bitcoin holder encountered a systematic barrier at Kraken in 2023: the exchange re
Hidden wallet discovered — hardware wallet (2023)
Hardware wallet (single key)
A 2023 case involved a Bitcoin holder who developed early-onset dementia and whose family was unable to obtain access to hardware wallets before the holder lost
Owner incapacity — hardware wallet (2022)
Hardware wallet (single key)
Estate planning and digital asset attorneys reported in 2022 that a growing pattern involved Bitcoin holders who became incapacitated—through accident, illness,
Owner incapacity — Coinbase (2022)
Exchange custody
An incapacitated Bitcoin holder's family presented a durable power of attorney to Coinbase in 2022 seeking access on behalf of their family member. Coinbase's p
Hidden wallet discovered — hardware wallet (2022)
Hardware wallet (single key)
A case highlighted in 2022 estate planning guidance involved a Bitcoin holder who suffered a sudden stroke and was left in a long-term care facility with severe
An elderly Bitcoin holder was diagnosed with dementia in November 2021.
Exchange custody
An elderly Bitcoin holder was diagnosed with dementia in November 2021. Their family sought to take over management of their accounts. The process of obtaining
During this period, an exchange account's time-limited feature removed their premium
Mobile or software wallet
A Bitcoin investor suffered a debilitating depressive episode in September 2021 and was unable to manage their financial affairs for four months. During this pe
Owner incapacity — exchange custody (2021)
Exchange custody
A cryptocurrency day trader was committed to psychiatric care under a mental health act in February 2021 following a manic episode triggered partly by the extre
Owner incapacity — exchange custody (2021)
Exchange custody
An August 2021 case describes a Bitcoin holder who was seriously injured in an accident and placed on sedation for 10 days. Their exchange account had open shor
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
The exchange automatically closed all positions after 7 days of no response to margin
Exchange custody
A Bitcoin holder was the victim of a serious assault in June 2021 and was hospitalised unconscious for five weeks. Their exchange account had margin positions.
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