Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01074
The passphrase—which they had set only 12 months earlier—could not be recalled.
SurvivesCase description
A user who had set up a hardware wallet in late 2021 during the Bitcoin price peak attempted to access it in December 2022 to sell during the market downturn. The passphrase—which they had set only 12 months earlier—could not be recalled. The user had a list of possible passphrases but none produced the correct wallet. After engaging a recovery service, the correct passphrase was identified on the 47th variant attempt. The case was noted as illustrative of passphrase entropy versus memorability trade-offs.
Custody context
| Stress condition | Passphrase unavailable |
| Custody system | Hardware wallet (single key) |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2022 |
| 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
274 cases involve hardware wallet (single key)
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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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