Owner incapacity — software wallet 2017

Blocked

Case description

A Bitcoin trader with severe anxiety disorder was hospitalised in April 2017 during a market volatility episode. During hospitalisation their phone was held by clinical staff. Open leveraged positions on an exchange auto-liquidated because they could not be managed remotely. By the time they were discharged the positions had been closed at a significant loss.

Custody context

Stress condition	Owner incapacity
Custody system	Mobile or software wallet
Outcome	Blocked
Documentation	Unknown
Year observed	2017
Country	Unknown

Structural dependencies observed

Single point of failure

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

Forum post

Evidence link

https://medium.com/@wayne_huang/rsa-2015-panel-bitcoin-s-future-threats-expert-s-roundtable-based-on-150-case-studies-92cc35e68e30

Related cases involving owner incapacity

68 cases involve owner incapacity 572 cases involve mobile or software wallet 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.