Crypto doesn't disappear when its owner dies, and it doesn't pass to the family automatically either. It stays exactly where it was. What happens next depends on one question: who holds the keys?
- If an exchange or app held it (Coinbase, Kraken, Binance, Robinhood, Cash App), the company freezes the account once it learns of the death and releases the crypto to a named beneficiary or the estate through its own claim process.
- If it sat in a self-custody wallet (a hardware wallet, MetaMask, Exodus, Robinhood Wallet, Coinbase Wallet), only someone with the recovery phrase can move it. No company or court can reset that.
- If nobody knows it exists, or nobody can find the phrase, it is effectively lost.
The three outcomes at a glance
| Where the crypto was | What happens after the death | Who can get it | What the family needs |
|---|---|---|---|
| Exchange or app account | Frozen when the company is told; released through its estate or beneficiary claim | A named beneficiary, or the executor or administrator | Death certificate, proof of authority, ID; each company's form |
| Self-custody wallet | Nothing changes; the coins sit on the blockchain | Whoever has the recovery phrase (and passphrase, if one was set) | The recovery phrase, plus instructions on which wallet and network |
| Unknown or unrecoverable | Nothing happens; no one is notified | Nobody | Nothing helps once the information is gone |
Crypto on an exchange: a claim, not a login
An exchange account works much like a bank or brokerage account. The company holds the crypto for its customer, so the company decides who receives it after a death, following its terms and the law where the owner lived.
What families usually see:
- The account is restricted once the company is notified. Nobody should sign in with the owner's password; that isn't a claim and can complicate the estate.
- Beneficiaries are rare. Coinbase says individual accounts don't support named beneficiaries, and Kraken says it doesn't currently offer them. Robinhood lets customers name transfer-on-death beneficiaries for stocks, but says crypto is distributed as part of the estate.
- The estate's legal representative claims it with a death certificate, proof of appointment (probate, letters of administration, or a small-estate affidavit where allowed), ID and the company's own form.
- No company publishes a firm timeline. Complete documents with matching names are the part the family controls.
Each platform has its own form and document list:
| Platform | Its process | Our guide |
|---|---|---|
| Coinbase | Executor Services form, four documents | Coinbase deceased account |
| Kraken | Deceased client account claim, four documents | Kraken deceased client claims |
| Binance | Inheritance Appeal | Binance inheritance appeal |
| Robinhood | Estates form; crypto goes to the estate | Robinhood estates form |
| Cash App | Deceased Customer & Estate Services, by calling support | Cash App deceased account |
| Crypto.com | Official support channel | Crypto.com after a death |
If you don't know which exchanges the person used, the family checklist for the first 30 days shows where to look: email, bank statements and tax forms.
Crypto in a self-custody wallet: the phrase is everything
A self-custody wallet has no company behind it that can release funds. The crypto is controlled by a private key, and the 12- or 24-word recovery phrase restores that key in any compatible wallet app. Whoever has the phrase can move the coins; nobody else can.
Bitcoin is the most common example. Bitcoin bought on Coinbase, Cash App or Robinhood sits in the company's custody and is claimed through that company. Bitcoin moved to a hardware wallet or a mobile wallet app sits at an address only its private key controls, and the recovery phrase is the only way to reach it.
That has three consequences families should know:
- A death certificate or court order can't unlock it. Wallet makers can't recover a phrase they never had. See which wallets have real support numbers.
- A hardware wallet's PIN isn't enough. After a few wrong attempts many devices wipe themselves, and the phrase is what restores the funds. If the owner set an extra passphrase, it's needed too. Our guide to PINs, seed phrases and passphrases explains the difference.
- Anyone who finds the phrase first can take everything. Keep any phrase you find offline and private, and never type it into a website or give it to someone who contacts you offering help.
Families usually find phrases in a safe, a fireproof box, a bank safe deposit box, or papers kept with a will. Where people usually store seed phrases can help with the search.
When crypto is lost for good
Crypto is lost when no one can prove a claim to an exchange account, or no one can find a self-custody wallet's recovery phrase. The coins still exist on the blockchain, but nobody can move them. There is no unclaimed-property office for a self-custody wallet.
The most common reasons are simple: the family never learned the crypto existed, the phrase was kept only in the owner's head or on a device nobody can open, or the only written copy was destroyed.
Be wary of anyone who says they can get it back for a fee. The FBI's Internet Crime Complaint Center has warned about companies that falsely claim they can recover crypto. Our recovery-scam checklist lists the warning signs.
What a will does, and doesn't do
A will decides who should receive the crypto and who manages the estate. It doesn't give anyone the means to reach a self-custody wallet, and a will usually becomes a public court record in probate, so it should never contain a recovery phrase.
In most U.S. states, a version of the Revised Uniform Fiduciary Access to Digital Assets Act lets an executor access a person's digital accounts if the person allowed it, in the will or in an online tool the company provides. That helps with email and accounts that show where crypto is; it can't produce a lost key. See how to leave crypto in a will.
Taxes after a death
In the U.S., heirs often receive a stepped-up basis on crypto inherited from someone who died, which can reduce the tax when they later sell. Record each asset's value on the date of death before anything moves. See is inherited crypto taxable? Some states also charge their own estate or inheritance tax; see crypto inheritance tax by state. This article is general information, not legal or tax advice.
How to make sure your crypto isn't lost
- Write down what you own and where: which exchanges (and the email used), which wallets, which networks. A digital asset inventory works well.
- Name beneficiaries where a platform allows it, and remember that most exchanges route crypto through the estate anyway.
- Store recovery phrases safely and tell someone where they are, without putting the phrase in your will or an email.
- Leave instructions your family can follow: a letter of instruction explains which steps to take for each account.
PingVaults can hold encrypted instructions and deliver them to a trusted contact after a period of inactivity you choose. It doesn't replace a will or an exchange's claim process.
Common questions
What happens to crypto when someone dies?
It stays where it was. Crypto on an exchange is frozen and released to a beneficiary or the estate through that company's claim process. Crypto in a self-custody wallet can be moved only by someone with its recovery phrase; if nobody has it, the crypto is effectively lost.
What happens to bitcoin when someone dies?
Nothing happens to the bitcoin itself: it stays where it was. Bitcoin held by an exchange or app such as Coinbase, Cash App or Robinhood is frozen and released to a beneficiary or the estate after a claim. Bitcoin in a self-custody wallet can be moved only by someone with its recovery phrase or private key; without it, the bitcoin stays on the blockchain but can never be spent.
Does crypto go to next of kin automatically?
No. On an exchange, the company releases it to a named beneficiary or the estate's legal representative after a claim. In a self-custody wallet, nothing happens automatically; the family needs the recovery phrase.
Can an exchange give the family the password?
No. Exchanges don't hand over a deceased customer's login. The estate submits a claim with a death certificate and proof of authority, and the exchange transfers the assets.
Can a court order unlock a crypto wallet?
A court can order an exchange to release an account it controls. It can't recover a self-custody wallet's recovery phrase, because no company holds it.
What happens to bitcoin if no one has the private key?
It stays on the blockchain, but no one can move it. Without the recovery phrase or private key, it is permanently inaccessible.