How to Recover Cryptocurrency After Death

Some self-custody crypto becomes permanently inaccessible when no one has the private key or recovery phrase. Unlike a bank account, there's no customer service department that can reset a lost private key or reverse an unauthorized transfer.

If you're an executor dealing with cryptocurrency in an estate, the recovery path depends entirely on how the deceased stored their crypto.

Exchange-Based Crypto (Custodial Accounts)

If the deceased held crypto on a centralized exchange like Coinbase, Kraken, or Binance, the exchange holds the private keys. This is the recoverable scenario.

Coinbase: Submit a claim through Coinbase's Executor Services Form. You'll need:

• Certified death certificate (raised seal, not a photocopy)
• Letters Testamentary or Small Estate Affidavit from probate court
• Your government-issued photo ID
• A signed letter of instruction directing the transfer

Coinbase doesn't support beneficiary designations. Transfer is governed by probate court orders or state intestate succession laws. Follow Coinbase's case updates for the claim's review status.

Kraken: Route your claim through their compliance team. Requirements are similar but stricter:

• Complete, high-resolution color copy of the official death certificate (funeral home certificates are rejected)
• Court-issued Letters of Administration
• Your photo ID
• Signed letter of instruction

Binance: Contact customer support directly with a certified death certificate and probate documentation showing your authority to handle the estate.

Self-Custody Wallets (Hardware and Software)

This is where crypto inheritance gets difficult. If the deceased used a hardware wallet (Ledger, Trezor) or a software wallet, the private keys exist only on that device and in the recovery seed phrase.

If you find the seed phrase: The 12, 18, or 24-word recovery phrase regenerates the wallet on any compatible device. This is the golden ticket. Check safes, filing cabinets, bank safety deposit boxes, and any physical location where the deceased kept important documents.

If you find the hardware wallet but not the seed phrase: The device PIN protects access. Trezor devices have model-specific limits before a reset erases the wallet on the device: 16 incorrect attempts on Trezor Model One, Model T, Safe 3, and Safe 5; 10 on Safe 7. Do not guess. A valid wallet backup is needed to restore the wallet after a wipe.

If you find neither: The crypto is almost certainly unrecoverable. No software company, forensics firm, or court can bypass a missing private key. The cryptographic architecture makes this mathematically impossible.

Watch for Recovery Scams

Crypto recovery scams spike after deaths become public knowledge (obituaries, social media posts). The pattern is always the same:

• Someone claims they can recover crypto from a locked wallet "for a fee"
• They ask for the seed phrase, device PIN, or an upfront payment
• No legitimate exchange, wallet company, or forensics firm will ever ask for a seed phrase

Anyone claiming they can recover self-custody crypto without the private key or seed phrase is a scammer. There are no exceptions.

Tax Implications

Cryptocurrency is treated as property for federal estate tax purposes. As of 2026, the federal estate tax exemption is $15 million per individual. The fair market value on the date of death establishes the cost basis for heirs — a potential advantage if the crypto appreciated significantly, since heirs get a stepped-up basis.

State estate and inheritance tax rules have separate thresholds, which can be lower than the federal exemption. An estate attorney or CPA experienced with digital assets should handle the tax filings.

What to Do Now

1. Search for exchange accounts — check email for Coinbase, Kraken, Binance, Gemini correspondence
2. Locate hardware wallets — look for small USB-like devices (Ledger looks like a thumb drive; Trezor is a small touchscreen)
3. Find the seed phrase — check safes, safety deposit boxes, and any "emergency" or "important documents" folders
4. Confirm authority before moving crypto during probate; custodial exchanges require probate documentation for estate claims
5. Document the value on the date of death for estate tax purposes

The Digital Estate Toolkit includes a crypto triage flowchart for executors, covering exchange claims, self-custody recovery, and the documentation needed for each scenario.