Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01243
Passphrase unavailable — Armory (2024)
BlockedCase description
A long-dormant Bitcoin wallet from 2013, containing 2.3 BTC, was the subject of a recovery attempt in September 2024. The holder had used an Armory software wallet—a program that had been discontinued in 2017—and could not remember the passphrase. The wallet file was intact. Armory used a custom key derivation function distinct from Bitcoin Core, requiring Armory-specific tooling. The holder contacted recovery specialists who confirmed that Armory wallet recovery was possible if partial password information was available. Without any password clues, however, the recovery was computationally infeasible against the wallet's encryption strength.
Custody context
| Stress condition | Passphrase unavailable |
| Custody system | Desktop Software Wallet |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2024 |
| Country | International |
Structural dependencies observed
What this illustrates
The seed phrase was there, but the passphrase that unlocked it was gone. Both are required. Access was not recoverable.
Outcome interpretation
Access was not 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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