CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00091

Passphrase unavailable — Mt. Gox (2013)

Constrained
Case description
As Bitcoin exchanges in 2013 tightened account security, users who had created accounts in 2011 or 2012 with now-forgotten passwords and had not linked a recovery email found themselves locked out. Exchanges such as Mt. Gox and Bitstamp implemented identity verification for password resets but users who had registered anonymously could not pass verification and lost account access.
Custody context
Stress conditionPassphrase unavailable
Custody systemExchange custody
OutcomeConstrained
DocumentationUnknown
Year observed2013
CountryUnknown
Structural dependencies observed
Institutional cooperation required
What this illustrates
The seed phrase was there, but the passphrase that unlocked it was gone. Both are required. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Publicly Reported
Evidence type
Forum post
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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