Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00564
A user stored their seed phrase in an encrypted file on Dropbox.
BlockedCase description
A user stored their seed phrase in an encrypted file on Dropbox. In September 2018 they discovered the Dropbox account had been compromised and all files deleted by an attacker. The encryption password for the seed file was known but the file itself was gone. Dropbox's version history did not extend back far enough to recover it.
Custody context
| Stress condition | Seed phrase unavailable |
| Custody system | Mobile or software wallet |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2018 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
The wallet existed only on that device. When the device became inaccessible, there was no other way back in. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
Evidence link
Related cases involving seed phrase unavailable
146 cases involve seed phrase 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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