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%)
Owner incapacity — exchange 2016
Exchange custody
A Bitcoin exchange account holder with late-stage Alzheimer's disease in October 2016 had a family member attempt to gain access to their exchange account. The
Owner incapacity — software wallet 2016
Mobile or software wallet
A Bitcoin investor suffering from severe depression in August 2016 entered voluntary psychiatric care. During the admission process they were required to surren
Owner incapacity — exchange custody (2016)
Exchange custody
A Bitcoin trader was hospitalised for two months following a serious illness in March 2016. Their exchange account held open leveraged positions. Without 2FA-au
A software update broke the screen reader's compatibility with their wallet application.
Mobile or software wallet
A Bitcoin holder with a severe visual impairment relied on a screen reader to access their wallet. In May 2016 a software update broke the screen reader's compa
Owner incapacity — software wallet 2015
Mobile or software wallet
A Bitcoin investor suffered a severe brain injury in August 2015 that left them in a coma for three months. During this period their family needed to manage fin
A Bitcoin holder was diagnosed with early-stage dementia in 2015.
Mobile or software wallet
A Bitcoin holder was diagnosed with early-stage dementia in 2015. Their family discovered they had BTC holdings but the holder could not reliably recall wallet
Owner incapacity — exchange 2015
Exchange custody
A Bitcoin day trader was involuntarily admitted to a psychiatric facility in March 2015 following a mental health crisis. Their exchange account contained signi
Owner incapacity — software wallet (2015)
Mobile or software wallet
A November 2015 forum case describes a user with a progressive neurological condition who had begun to lose fine motor control. They had stored their wallet pas
Owner incapacity — exchange 2015
Exchange custody
A Bitcoin trader was involved in a serious accident in June 2015 and was unconscious for several weeks. Their exchange account contained significant holdings. F
Owner incapacity — exchange 2014
Exchange custody
A Bitcoin exchange account holder was diagnosed with a severe mental health condition in November 2014 requiring institutional care. Their family sought to acce
Owner incapacity — software wallet 2014
Mobile or software wallet
A Bitcoin miner who suffered a stroke in July 2014 had their entire wallet infrastructure on an air-gapped laptop in their home office. Family members who neede
Owner incapacity — software wallet (2014)
Mobile or software wallet
A solo Bitcoin miner suffered a serious accident in April 2014 and was in intensive care for three weeks. Their mining rig continued running during this period,
Owner incapacity — software wallet (2014)
Mobile or software wallet
A prominent early Bitcoin forum contributor was injured in a road accident in September 2014 and spent two months in rehabilitation. Their Bitcoin wallet was st
Gox and, being unable to communicate, could not direct family members to attempt
Exchange custody
A Bitcoin enthusiast was hospitalised in February 2014 just as the Mt. Gox crisis unfolded. They held a significant balance on Mt. Gox and, being unable to comm
Their exchange account required 2FA via a phone that was lost in the accident.
Exchange custody
A 2013 documented case involved a Bitcoin holder who suffered a serious accident and was in a coma for an extended period. Their exchange account required 2FA v
Owner incapacity — software wallet 2013
Mobile or software wallet
A Bitcoin miner who was hospitalised for an extended period in 2013 was unable to access their wallet to pay medical bills in Bitcoin. The wallet was on a home
Owner incapacity — software wallet (2013)
Mobile or software wallet
A sole operator of a small Bitcoin business fell seriously ill in June 2013 and was hospitalised for six weeks. The business held BTC in an operational hot wall
Owner incapacity — software wallet 2013
Mobile or software wallet
A Bitcoin miner who was incarcerated in 2013 left behind a computer with a significant wallet balance. Family members who attempted to access the wallet to pay
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