Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01046
The user had no secondary backup and faced permanent loss of access to a hardware
BlockedCase description
A case handled by a crypto recovery firm in 2022 involved a user who had stored their seed phrase backup in a safety deposit box at a bank that subsequently merged with another institution. During the branch transition, the safety deposit box contents were transferred improperly and the seed phrase envelope was not included in the inventory. The user had no secondary backup and faced permanent loss of access to a hardware wallet holding Bitcoin accumulated since 2017.
Custody context
| Stress condition | Seed phrase unavailable |
| Custody system | Hardware wallet (single key) |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2022 |
| Country | International |
Structural dependencies observed
What this illustrates
Recovery needed someone with specialized technical knowledge who wasn't available. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Privately Reported
Evidence type
News article
Related cases involving seed phrase unavailable
146 cases involve seed phrase 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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