CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01213

Passphrase unavailable — Coinbase (2024)

Survives
Case 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 conditionPassphrase unavailable
Custody systemMobile or software wallet
OutcomeSurvives
DocumentationUnknown
Year observed2024
CountryInternational
Structural dependencies observed
Technical specialist required
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 View archive statistics →
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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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