What happens to cryptocurrency stored on an exchange like Coinbase when the owner passes away?

Custodial exchanges and self-custody wallets require different plans. For an exchange account, document the provider and its current estate-support route. The provider may require evidence of authority before disclosing information or transferring assets. Timing and requirements vary; avoid promising a universal deadline.

For self-custody, recovery material can enable technical access, but it does not establish permission to move assets. Estate, tax and fiduciary obligations can still apply. Ask an appropriately qualified adviser about the specific situation.

ZeroLatch can deliver a scoped inventory and contact instructions. It does not act as a custodian, verify death or provide instant inheritance.

The exchange inheritance process (and why it fails)

When a crypto exchange account holder dies, the family must:

  1. Obtain a death certificate — typically takes 1-2 weeks
  2. Open probate proceedings — 2-6 months depending on jurisdiction
  3. Submit court letters testamentary to the exchange's legal department
  4. Wait for the exchange's compliance review — Coinbase, Kraken, and Binance each have their own processes that can take 3-6 months
  5. Verify the executor's identity through multiple rounds of KYC documentation
  6. Receive the funds — sometimes as a check, sometimes as a crypto transfer, sometimes not at all if the account was flagged

Common failure points: • The exchange requests documents the estate can't provide (e.g., the deceased's 2FA device) • The account is frozen for "suspicious activity" after months of login inactivity • The exchange's legal department is overwhelmed and unresponsive • Probate is contested, extending the timeline indefinitely • The exchange's terms of service include clauses that complicate posthumous access

The self-custody inheritance trade-off

With self-custody, you carry the recovery risk. A successor may need practical knowledge, separately held recovery material and appropriate authority before taking action.

Use ZeroLatch for a wallet inventory, an adviser contact and the location of the documented recovery arrangement. Keep seed phrases, private keys and authentication factors separately. Do not bundle everything needed to control every account into one delivery.

Choose a check-in interval and extra waiting time that fit a delayed information handover. Explain the process to your person and rehearse with synthetic information. For exchange accounts, use the provider's estate process rather than asking someone to impersonate the owner. Retain an independent copy of the instructions.