If your hardware wallet is lost or stolen, you need to acquire a new one and conduct a key replacement.
Warning: The following steps impact the keys securing your bitcoin, and missteps can result in permanent loss of funds. If you'd like to speak one-on-one with a bitcoin expert to walk through this process, purchase a Premium Support session.
While a single lost or stolen hardware wallet usually presents no immediate risk to funds in a multisig custody setup like an Unchained vault, a lost or stolen hardware wallet constitutes a compromised key. Performing a key replacement to reestablish the proper operational security of your multisig setup is a high priority and should be done as soon as possible.
Follow the below steps to replace the lost wallet and reestablish vault security.
1. Acquire or reset a replacement hardware wallet
If your hardware wallet is lost or stolen, you need to purchase a replacement if you don't already have one. It's generally best to purchase hardware directly from the manufacturer. See the full list of hardware wallets that Unchained supports.
Optional: Factory reset an unused hardware wallet
If you have an oldhardware wallet (ensure it isunusedandnon-compromisedbefore proceeding) that you want to replace the lost or stolen hardware wallet with, you can follow the manufacturer's respective instructions to perform a factory reset.
2. Initialize the hardware wallet as new
Next, initialize the brand new (or newly-reset) hardware wallet. This generates a new seed phrase which generates the public key that you will upload to the Unchained platform.
Note: Don't dispose of the corresponding seed phrase for the broken hardware wallet at this stage. While not required, you may wish to use that backup to sign for the key replacement as described in step 4 below. This allows you to conduct a key replacement without depending on an Unchained signature.
Follow the guide from the manufacturer to set up the device as new:
3. Conduct a key replacement
Follow our step-by-step guide to replace your key. It may help to open the guide in another browser tab while you perform the key replacement. Please contact us if you need any help with these steps.
FAQs
The real key to your funds lies in your wallet's seed phrase, also known as a recovery phrase or mnemonic phrase. This series of words acts as a backup of your private keys, allowing you to restore access to your cryptocurrencies even if your hardware wallet is lost, stolen, or damaged.
What to do if your hardware wallet is lost, stolen, or damaged? ›
The real key to your funds lies in your wallet's seed phrase, also known as a recovery phrase or mnemonic phrase. This series of words acts as a backup of your private keys, allowing you to restore access to your cryptocurrencies even if your hardware wallet is lost, stolen, or damaged.
What to do if wallet is lost or stolen? ›
If your wallet is lost or stolen, contact your credit card issuers, freeze your credit cards, request a fraud alert, replace your driver's license and monitor your accounts.
Can hardware wallets be traced? ›
Yes, you can trace crypto wallets via public transaction records on the blockchain, though identifying the actual owner may require additional information.
What if your Ledger is stolen? ›
1- Immediately send your remaining crypto assets to temporary accounts. First ensure your backup/new device is configured with the recovery phrase that secures your accounts. Next, using Ledger Live and your backup/new device, send all your remaining crypto assets to temporary accounts.
What if I lose my Trezor wallet? ›
If your Trezor was lost or stolen, you will need your Trezor's secret recovery phrase to restore and move the funds to a new secure wallet. If your Trezor was lost or stolen, you will need your Trezor's secret recovery phrase to move the funds to a new secure wallet.
What happens after 3 attempts on Ledger? ›
You have three attempts to enter your PIN code correctly on your Ledger device. After three incorrect attempts, your device will factory reset, and you can only restore it using your secret recovery phrase.
Should I panic if I lost my wallet? ›
It can be upsetting to lose your wallet, but there's no need to panic. Most of the items in your wallet are replaceable. Sure, it can be a hassle, but all hope is certainly not lost. So, if you've lost your wallet, take these steps to minimize the damage and get back to normal as quickly as possible.
Is there a way to track a lost wallet? ›
Lost wallets can be effectively tracked using accessories that provide a tracking and location system, like the eufy SmartTrack card, which can connect to your cell phone and locate the exact location of your wallet to help you retrieve it quickly.
How do I stop my wallet from being lost? ›
Here are nine great tips to keep better track of your wallet and recover it quickly if lost.
- Take Organization More Seriously. ...
- Scale Back The Size Of Your Everyday Carry. ...
- Plan Ahead And Set Reminders. ...
- Keep A Hidden Emergency Stash. ...
- Try A Phone Case Wallet Attachment. ...
- Own A Wallet You Truly Love. ...
- Rely On Ringing.
A hardware wallet is a secure physical device for sending, receiving, and storing cryptocurrencies and tokens offline. It ensures maximum security by never exposing your wallet backup or sensitive data to an internet-connected environment like your PC or smartphone.
Can someone hack my hardware wallet? ›
While hardware wallets like the Ledger Nano S are generally considered more secure than software wallets, they are not completely immune to hacking or theft.
What happens if I lost my hardware wallet? ›
If you've lost your hardware wallet, you'll need to recover it using your recovery seed. The same applies if it's been stolen or damaged, i.e., burnt or exposed to water; you'll need to recover your keys on a new functioning device.
Does Ledger wallet report to IRS? ›
Yes. In the United States, your transactions on Ledger and other platforms are subject to income and capital gains tax. If you've earned or disposed of (ex. Sold or traded away cryptocurrency) during the year, you'll have a tax liability to report to the IRS.
Can someone steal from my Ledger? ›
While we are confident that Ledger devices are designed to withstand all known vectors of attack, scammers are continually finding ways to use social engineering, phishing, and fraud tactics to trick crypto users to separate them from their hard-earned money.
How can I recover my lost wallet? ›
Here's what to do when you lose your wallet:
- Retrace your steps. ...
- Contact your bank. ...
- Inform credit card agencies. ...
- Check for unusual account activity. ...
- Set up fraud alerts. ...
- File a police report. ...
- Change your passwords and enable 2FA. ...
- Review auto-pay services.
If you lose or forget your private key, a seed phrase or recovery phrase can serve as a lifeline to recover your crypto wallet. Think of it as a backup password—it's a sequence of random words, usually 12 or 24, that stores the data necessary to access or restore your cryptocurrency.
How do I keep my hardware wallet safe? ›
Given the benefits and risks of hardware wallets, it's essential to remember the following ten tips when using them to maximize security.
- Purchase a hardware wallet from a reputable vendor. ...
- Install recent updates. ...
- Never reveal your seed phrase. ...
- Use a strong PIN. ...
- Stay mindful of your environment. ...
- Double-check addresses.
Selecting New Wallet when setting up a COLDCARD® generates 24 seed words for you to record. Those words allow you to recover your Bitcoin funds if your wallet is lost, stolen, or destroyed.
