Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01197
The user had a shortlist of potential extensions from their 2018 password habits.
SurvivesCase description
A user who had moved Bitcoin to an Electrum wallet in 2018 using a custom seed extension attempted to restore the wallet in September 2023 after a hard drive failure. The seed phrase had been correctly backed up, but the custom extension—an additional passphrase entered at wallet creation—had been recorded in a notes file that was lost in the same drive failure. The user had a shortlist of potential extensions from their 2018 password habits. A recovery service tested 340 candidate extensions and found the correct one after two days of computation.
Custody context
| Stress condition | Passphrase unavailable |
| Custody system | Desktop Software Wallet |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | International |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
Source
Privately Reported
Evidence type
News article
Related cases involving passphrase unavailable
217 cases involve passphrase unavailable
25 cases involve desktop software wallet
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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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