Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01348
Owner incapacity — hardware wallet (2025)
IndeterminateCase description
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 manage their cryptocurrency holdings. The court appointed a deputy to manage the holder's financial affairs, but the deputy encountered the practical barrier that the holder's self-custody Bitcoin was not accessible without their physical involvement with the hardware device and PIN. A specialist submitted a technical report to the court explaining that the hardware wallet's security model required the holder's physical participation—legal authority alone was insufficient. The court ultimately ruled that the Bitcoin had to be treated as an inaccessible asset pending the holder's recovery or death.
Custody context
| Stress condition | Owner incapacity |
| Custody system | Hardware wallet (single key) |
| Outcome | Indeterminate |
| Documentation | Unknown |
| Year observed | 2025 |
| Country | United Kingdom |
Structural dependencies observed
What this illustrates
There was only one way in. When that path was gone, so was access. 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
Related cases involving owner incapacity
68 cases involve owner incapacity
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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