Cryptocurrency's ascent into mainstream portfolios is creating a new class of estate-planning pitfalls, according to Stacy Francis, president of Francis Financial. Speaking at a seminar hosted by law firm Anderson Kill in midtown Manhattan, Francis described digital assets as a growing source of complexity for advisors and their clients. “It can be a nightmare,” she said, noting that the problem often emerges during divorces or after a client’s death.
Francis distinguished between crypto held at custodians like Coinbase, which generate annual tax documents and are relatively easy to locate, and assets stored on personal hardware. “I could have $5 million worth of cryptocurrency in this hard drive,” she said, pointing to a laptop. “The only way my heirs will find it is if I have written out my key.” Those keys, typically 20 to 25 alphanumeric characters, are the sole gateway to the funds. Without them, the assets are effectively lost.
The stakes are illustrated by a well-known case: In 2013, a Wales resident named James Howell accidentally discarded a hard drive containing 8,000 bitcoins. Over the following 12 years, he pursued legal action and even attempted to buy the landfill where the drive ended up, all to recover what would now be worth more than $900 million. Ultimately, he launched his own cryptocurrency to recoup some losses. The episode underscores the irreversible nature of lost private keys.
Another high-profile example involves NBA star Kevin Durant. In 2016, Durant invested in bitcoin via Coinbase but lost his password, leaving him unable to sell as the value soared. His agent later confirmed the holding “went through the roof” while inaccessible. In September 2025, Coinbase CEO Brian Armstrong announced on X that account recovery was complete, resolving the issue after nearly a decade.
The challenge is becoming more urgent as advisors increase crypto allocations. The Bitwise/VettaFi 2026 Benchmark Survey of Financial Advisor Attitudes Toward Crypto Assets found that 32% of advisors invested in crypto for client accounts in 2025, up from 22% the prior year. That growth means more estates will contain digital assets, raising the stakes for proper documentation.
Francis emphasized that advisors must ensure clients record their keys and communicate their locations to heirs. “Letting your heirs know where all your assets are… so they don’t find themselves in a place where they don’t know what you have,” she said. The advice aligns with broader estate-planning best practices, but crypto’s unique technical requirements add a layer of urgency.
Some firms are stepping in to fill the gap. Digital Ascension Group, a crypto-focused RIA, told InvestmentNews earlier this year that a growing number of advisors are using its digital platforms to manage cryptocurrency holdings and reduce administrative headaches. The trend reflects a broader push to integrate digital assets into traditional wealth management workflows.
For advisors, the message is clear: crypto estate planning demands proactive measures. Without documented keys, even substantial holdings can vanish, leaving heirs with nothing but a hard drive. As Francis put it, “You could be leaving your heirs without any idea at all for that key.”
