Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01385
Passphrase unavailable — Ledger Nano S (2025)
BlockedCase description
A 2025 case involved a Ledger Nano S that had been used with a BIP39 passphrase—the optional 25th word—since 2020. The holder had stored the passphrase separately from the seed phrase as a security measure. In 2025, the holder relocated internationally and during the move the document containing the passphrase was lost. The seed phrase backup remained intact. The holder could restore the base wallet (with the seed phrase alone) and could see it held a small balance used for testing. The main holding wallet—which used the passphrase-derived path—showed no balance on the base derivation path. The passphrase could have been any character string of any length. With no memory of its construction, recovery was technically impossible.
Custody context
| Stress condition | Passphrase unavailable |
| Custody system | Hardware wallet (single key) |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2025 |
| 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
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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