Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00538
Hidden wallet discovered — software wallet (2018)
BlockedCase description
A Bitcoin holder serving a short prison sentence found in August 2018 that their confiscated phone — which contained their primary wallet — had been factory-reset by the detention facility's property manager as part of a policy update. No seed backup existed outside the phone. The facility's insurance policy explicitly excluded digital currency losses.
Custody context
| Stress condition | Owner incapacity |
| Custody system | Mobile or software wallet |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2018 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
Before anyone could access the funds, a legal process had to be completed first. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
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
← All cases
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.
Translate