Hidden wallet discovered — hardware wallet (2023)

Indeterminate

Case description

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 (POA) drafted before RUFADAA's adoption in the state. The attorney discovered the POA did not contain explicit digital asset authority language required under RUFADAA. Without a court order—which would take months to obtain and might be denied—they had no legal basis to access the wallet even if they found the seed phrase. The case required a separate court proceeding to establish digital asset authority before any technical access could be attempted.

Custody context

Stress condition	Owner incapacity
Custody system	Hardware wallet (single key)
Outcome	Indeterminate
Documentation	Unknown
Year observed	2023
Country	United States

Structural dependencies observed

Legal process requiredSingle point of failure

What this illustrates

Before anyone could access the funds, a legal process had to be completed first. It's not clear whether anyone ever regained access.

Outcome interpretation

Not enough information is available to determine the outcome.

Source

Privately Reported

Evidence type

News article

Evidence link

https://www.carolinaestateplanning.com/blog/why-90-of-crypto-holders-will-accidentally-disinherit-their-families/

Related cases involving owner incapacity

68 cases involve owner incapacity 274 cases involve hardware wallet (single key) View archive statistics →

This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents. Submit a case

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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.