Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01213
Passphrase unavailable — Coinbase (2024)
SurvivesCase description
A 2024 Coinbase Wallet user attempted to restore their wallet to a new phone after their old phone was damaged beyond repair. Coinbase Wallet is a self-custody wallet—Coinbase does not hold the keys. The user had the seed phrase written down but had also set an optional recovery passphrase that created a custom derivation path. The user could not recall the recovery passphrase exactly. The seed phrase alone restored a wallet, but it appeared empty—the balance was on the passphrase-derived path. Recovery services worked with the user's partial passphrase memory to identify the correct variant within approximately 36 hours.
Custody context
| Stress condition | Passphrase unavailable |
| Custody system | Mobile or software wallet |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2024 |
| 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
572 cases involve mobile or 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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