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%)
During custody their exchange account's time-limited API keys expired.
Exchange custody
A November 2020 case describes a Bitcoin investor remanded in custody for four months on criminal charges. During custody their exchange account's time-limited
The family discovered they held Bitcoin on multiple platforms and in multiple wallets.
Mobile or software wallet
An October 2020 case describes an elderly Bitcoin holder who was diagnosed with advanced dementia and placed in full-time care. The family discovered they held
Owner incapacity — exchange custody (2020)
Exchange custody
A cryptocurrency day trader was sedated and placed on a ventilator due to COVID-19 in April 2020 for 21 days. During this period their exchange account had open
During this period, open leveraged positions on their exchange account were
Exchange custody
A Bitcoin trader hospitalised with severe COVID-19 in March 2020 was placed in an induced coma for three weeks. During this period, open leveraged positions on
Owner incapacity — software wallet 2020
Mobile or software wallet
A Bitcoin day trader developed severe anxiety disorder during the March 2020 COVID crash, triggered by the rapid loss of 50% of their exchange balance in 24 hou
Owner incapacity — software wallet 2020
Mobile or software wallet
A Bitcoin holder developed severe long COVID symptoms in July 2020 that included significant cognitive impairment. They had previously managed their holdings in
Owner incapacity — exchange custody (2020)
Exchange custody
A cryptocurrency investor was incapacitated in a traffic accident in August 2020 and remained in an intensive care unit for six weeks. During this period their
Owner incapacity — software wallet 2019
Mobile or software wallet
A Bitcoin holder with advancing multiple sclerosis documented in June 2019 that they could no longer reliably type their wallet passphrase due to motor control
Owner incapacity — software wallet (2019)
Mobile or software wallet
An October 2019 case documents a Bitcoin holder with a degenerative neurological condition who, in an earlier lucid period, had drafted instructions for accessi
Owner incapacity — exchange custody (2019)
Exchange custody
A Bitcoin trader was remanded in custody in March 2019 pending trial on unrelated charges. Their exchange account held leveraged positions requiring active mana
Owner incapacity — software wallet (2019)
Mobile or software wallet
An August 2019 case describes a Bitcoin holder undergoing chemotherapy whose cognitive function was temporarily impaired by treatment. During a treatment period
The exchange required in-person identity verification to reset the 2FA to a new phone.
Exchange custody
A Bitcoin trader serving a prison sentence found in April 2019 that their exchange's 2FA had expired and could not be renewed without a working phone number. Th
A Bitcoin trader was hospitalised for eight weeks following a cardiac event in May 2019.
Exchange custody
A Bitcoin trader was hospitalised for eight weeks following a cardiac event in May 2019. Their exchange account had open margin positions that were auto-liquida
An October 2018 case describes a Bitcoin holder incapacitated by a serious accident.
Exchange custody
An October 2018 case describes a Bitcoin holder incapacitated by a serious accident. Their family attempted to access the exchange account to liquidate holdings
Owner incapacity — exchange custody (2018)
Exchange custody
A cryptocurrency day trader was arrested on unrelated charges in March 2018 and held for 45 days before bail was granted. During that period their exchange acco
Owner incapacity — software wallet (2018)
Mobile or software wallet
A cryptocurrency trader with severe PTSD was admitted to an inpatient facility in June 2018 following a mental health crisis related in part to trading losses d
Hidden wallet discovered — software wallet (2018)
Mobile or software wallet
A Bitcoin holder serving a short prison sentence found in August 2018 that their confiscated phone — which contained their primary wallet — had been factory-res
A Bitcoin investor suffered a stroke in February 2018 that caused partial aphasia.
Exchange custody
A Bitcoin investor suffered a stroke in February 2018 that caused partial aphasia. They retained cognitive understanding of their holdings but could not reliabl
Owner incapacity — software wallet 2017
Mobile or software wallet
A Bitcoin user with a progressive motor neurone disease found in May 2017 that their condition had advanced to the point where they could no longer reliably typ
Owner incapacity — software wallet 2017
Mobile or software wallet
A Bitcoin trader with severe anxiety disorder was hospitalised in April 2017 during a market volatility episode. During hospitalisation their phone was held by
Owner incapacity — exchange custody (2017)
Exchange custody
A cryptocurrency investor was in a six-week rehabilitation programme in August 2017, during which internet access was prohibited. Their exchange account held po
Owner incapacity — software wallet (2017)
Mobile or software wallet
A Bitcoin trader suffered a traumatic brain injury in March 2017 and lost memory of their wallet passphrase. The wallet contained coins accumulated over four ye
Owner incapacity — exchange custody (2017)
Exchange custody
A Bitcoin holder in a long-term care facility in July 2017 had a significant exchange account. Their power of attorney had not been updated to cover digital ass
Owner incapacity — Coinbase (2017)
Exchange custody
A cryptocurrency investor with late-stage dementia had a Coinbase account with a substantial BTC balance in November 2017. Their family initiated a conservators
Owner incapacity — exchange 2016
Exchange custody
A Bitcoin day trader was diagnosed with a terminal illness in December 2016 and needed to liquidate exchange holdings to cover medical expenses. Their exchange
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