What happens to your crypto if your wallet maker shuts down?

If your wallet maker shuts down, your cryptocurrency will remain on the blockchain. Whether you can still use it depends on who holds the private keys and whether you have everything needed to restore access. Most non-custodial wallets require a seed phrase for recovery, but some backup methods depend on services run by the manufacturer.

Once the company closes, its app and online device verification may become unavailable, and it will stop releasing firmware updates. Using examples from 2024–2026, we explain how this affects wallet owners, which recovery details you need and what to check in your backup while the company is still operating.

Where your crypto is stored and what a wallet does

A wallet stores the private keys it uses to sign transactions, while balances and transfers are recorded on the blockchain. The BIP39 standard defines how a seed phrase and an optional passphrase are used to derive a seed: the starting data for generating the wallet’s keys. Most manufacturers support BIP39, so a saved seed phrase lets you restore access on another compatible device or in a compatible app, even if the company that made your wallet is no longer operating.

Recovery requires a complete backup in a format supported by the replacement wallet. Besides the seed phrase, you may need an passphrase, the address type and the derivation path, which specifies how keys and addresses are derived from the starting data. For multisig, where transactions require signatures from several keys, you also need to save the wallet configuration.

What could stop working if your wallet maker shuts down

A hardware wallet may remain fully functional even when the services it relies on are no longer available. The consequences depend on which features use the manufacturer’s servers and whether they can work without them.

• Support, warranty service and replacements. If the company stops servicing devices, you may lose access to advice, repairs or replacements from the manufacturer. This does not affect your ability to restore the wallet from a seed phrase.
• Firmware updates and network support. The device may still sign transactions, but without new firmware it will no longer receive fixes for security vulnerabilities. Changes to blockchains and apps may eventually limit its compatibility.
• The manufacturer’s app and servers. If the app gets balances and transaction history from the company’s servers, shutting them down may prevent it from syncing or broadcasting transactions. The keys and funds remain intact, but you may need another app or your own server to keep using the wallet. Samourai users faced this problem.
• Online authenticity checks. Some manufacturers rely on their website or a server to verify that a device is genuine. Keystone, for example, runs this check through its website. If the site becomes unavailable, this verification method will no longer work, making it harder to check a device before buying it, especially second-hand.

A separate risk arises if attackers obtain the key used to verify device authenticity. In a statement dated 26 October 2026, Keystone said attackers had gained access to its website on 20 October through a vulnerability in a third-party monitoring tool. According to the investigation, they stole the WebAuth device verification key; 25,964 purchase records were at risk of personal data exposure. The company stated that seed phrases and private keys were not affected.

The WebAuth key cannot be erased or overwritten in devices that have already been manufactured. With that key, attackers could create counterfeit devices that pass the online check. Keystone therefore announced plans to destroy 18,835 devices held in stock and switch to a new key. The company is still operating, but the incident shows how much owners can depend on its infrastructure: for devices with the old key received after 20 October, passing the online check is not enough. Keystone advises contacting its support team for an additional check before using such a device. According to the company, devices received and verified before the incident can still be used.

Examples: Cosmostation, Samourai and Ledger Nano S

Cosmostation: advance notice of closure

In August 2026, Cosmostation announced it would wind down its wallet service for iOS, Android and Chrome from 1 September. During this phase, users could still export seed phrases and private keys while other features were being discontinued. Since the cryptocurrency remained on the blockchain, users could restore access in another compatible wallet, such as Keplr.

Before switching, check whether the developers still support the app you have chosen: Leap, which had also been suggested as an alternative for the Cosmos ecosystem, announced in April 2026 that it would close on 28 May. The way you move your wallet also matters: a seed phrase lets you restore the accounts derived from it, provided the new wallet supports their networks and derivation paths, whereas an individual private key restores access only to the corresponding address.

Samourai: a sudden shutdown

On 24 April 2024, US law enforcement arrested the co-founders of Samourai Wallet and seized the project’s infrastructure, including servers in Iceland and its main domain. The app was also removed from Google Play for users in the US. Once the servers stopped running, users without a Dojo server of their own could no longer sync their wallet, see incoming transactions or send transactions through the familiar app.

Users restored access to their funds from seed phrases in other wallets, including Sparrow. If an owner had used a passphrase, restoring the same wallet without it was impossible; some Samourai accounts also required specific derivation paths. Recovery instructions published at the time advised disabling automatic app updates and moving funds to a wallet with a new seed phrase. The latter recommendation concerned privacy: anyone holding an account’s extended public key (xpub) can track transactions at addresses derived from that key.

Ledger Nano S: support being phased out

Ledger introduced the Nano S in 2016 and discontinued sales in 2022. In June 2025, the company’s chief technology officer, Charles Guillemet, explained that the Nano S’s 320 KB of memory limits further development of its software. Phasing out support does not switch the device off, but Ledger warns that changes to blockchains may affect its compatibility. If necessary, you can restore the wallet from its seed phrase on another compatible model, including the Ledger Nano S Plus or Ledger Flex, retaining access to the same addresses.

These examples cover different situations: Cosmostation and Samourai stopped running their software wallet services, while Ledger is still operating and phasing out support for one model. In both cases, what matters to the owner is whether they can use their keys through another device or app.

When a seed phrase alone is not enough

Whether you can restore access without the manufacturer depends on the backup format and any additional settings. The table covers the main options and the information you need to keep for each.

How open-source code and third-party apps help

Open-source code allows other developers to continue working on the software after the company closes, provided a team is willing to maintain it. Trezor publishes the source code for its firmware and Trezor Suite. For the Keystone 3 Pro, the manufacturer has published its firmware and hardware documentation, noting restrictions on third-party microcontroller libraries. Ledger has released the Ledger Wallet source code under the MIT licence, but the operating system on its secure chip is only partly available for review. When assessing how independent a wallet is from its maker, check which components are available for review and further development.

A third-party app can also help without any changes to the firmware. Many hardware wallets work with Sparrow or Electrum for Bitcoin, as well as MetaMask or Rabby for Ethereum and EVM-compatible networks. The device still signs transactions, while the third-party software retrieves blockchain data and broadcasts the signed transactions to the network.

While the manufacturer is still operating, check whether your model works with one of these apps, connect the device and compare the addresses and balance with those shown in the manufacturer’s app. You do not need to enter your seed phrase to connect a hardware wallet. If the addresses match, you will already know how to manage the same wallet through another app.

Scams after a project shuts down

After a project closes, its domain or accounts may pass to other people who exploit the familiar name to deceive former users. Bitcoin.com News reported that, in March 2026, one of Samourai’s former domains, previously seized by the authorities, had fallen under scammers’ control. Claiming to have resumed the wallet service, the site began distributing malware designed to steal seed phrases and private keys.

Similar scams also follow incidents at companies that are still operating. In October 2026, Keystone warned customers about fake messages sent in its name concerning device recalls, asset “migration”, refunds or wallet replacements. Before following instructions in such a message, look for an announcement through the manufacturer’s channels you have used before and cross-check it against independent reports of the event. An email, search ad or chat message alone does not prove that the instructions are genuine.

What changes with a custodial wallet

The recovery methods described above apply to non-custodial wallets, where you control the private keys. If your “wallet” is an account with an exchange or custodial service, the company holds the keys and you have no seed phrase of your own for independent recovery. If the service stops operating or goes bankrupt, the return of your funds will depend on the company’s actions and the resolution process.

FTX, for example, filed for bankruptcy in November 2022, but the first creditor payments did not begin until February 2025; the fifth distribution began on 31 July 2026. Claims were valued using asset prices at the time of the bankruptcy in November 2022, and payments followed a court-approved plan. For long-term storage, we therefore recommend considering a wallet where you hold the keys, after learning how to store and check its backup safely.

What to check in your own wallet

First, establish how your backup works and check whether the device is compatible with third-party apps. It is better to practise the full recovery procedure with a separate test wallet so that you do not put the funds in your main wallet at risk.

If you cannot find the words you wrote down but the device still works, follow our guide on what to do if you lose your seed phrase. Do not reset the device until you have moved all funds to a new wallet whose backup you have saved and checked.

1. Identify the backup format. Find out whether you use BIP39, SLIP-39, multisig, a recovery service or a wallet without a seed phrase, then use the table above to check what you need for independent recovery.
2. Save the additional details. Record your passphrase if you use one, along with the address type, derivation paths and account numbers. For multisig, save the descriptor or full configuration, including every signer’s xpub. Keep these details offline, with the passphrase stored separately from the seed phrase and device.
3. Use the built-in backup check. If your model lets you check the words you wrote down on the device itself, without entering them on a computer, use that feature. On the Trezor Safe 3 and Safe 7, for example, Check backup lets you enter the words directly on the device. It confirms that the words are recorded correctly but does not check the passphrase. Separately, make sure your passphrase opens the correct hidden wallet.
4. Connect the device to a compatible third-party app. Compare the addresses and balance with those shown in the manufacturer’s app, making sure you have selected the same accounts and address types. This confirms that you can use the same wallet through another app without entering your seed phrase.
5. Try a full recovery with a test wallet. Create a separate wallet with a new seed phrase, send a small amount to it and restore access on another compatible device or in a compatible app. Once you have confirmed that the addresses match, make a test transfer. This helps you learn the procedure but does not replace a check of your main wallet’s backup.
6. Keep offline copies of installers and any available firmware. Download them from official pages, along with checksums or digital signatures if the developer publishes them. This archive may help if the website closes or prolonged power and internet outages prevent you from downloading the software you need. The archive alone may not be enough: a separate firmware file is not available for every model, and installation may still require the manufacturer’s servers. Check these requirements in advance.

If the manufacturer has already announced its closure

• Verify the announcement and the proposed instructions. Cross-check the message through several independent channels and do not enter your seed phrase through a link in an email or ad. If the hardware wallet still works, first check whether you can connect it to another app without importing the seed phrase.
• Download the files you need while they are still available. Save the app, instructions, any available firmware and the information needed to verify the files. If you have not used a third-party app before, connect the device to a compatible app and compare the addresses, as described in point 4 above.
• Review automatic update settings. If the developer has stopped operating and you cannot verify where new versions come from, disable automatic updates for that app until the situation is clear. Check the source of manually installed software too: as the Samourai case showed, a familiar domain may already belong to someone else.
• Prepare to move to a wallet with a new seed phrase. If the device works and there are no reports of a threat to the keys, you can take the time to check your backup and choose a model that is still supported. Create a new wallet on it, save its backup and start moving funds with a small test transaction, checking the address on the device’s screen.

Conclusion

If your wallet maker shuts down, you may lose support, updates and the app you are used to, but you can retain access to your funds if you have a complete backup and know how to restore the wallet on a compatible device or in a compatible app. Depending on your setup, you may also need a passphrase, account details, SLIP-39 recovery shares or a multisig configuration alongside your seed phrase. If recovery depends on the company’s service or a single set of cards, account for those limitations in advance.

While the device still works, use its built-in backup check if available and try a compatible third-party app. Restoring a separate test wallet on another device or in an app will show you what information you need and what to do if you have to switch devices or software.