Seed Phrase Red-Flag Protocol
Print this. The moment it covers arrives without warning, usually from a well-meaning client, and the prepared answer is always the same.
The rule
A professional never asks for, accepts, reads, photographs, or stores a client's seed phrase or private keys. Not in a file, an estate binder, a sealed envelope, an email, a photo, or a phone call. No exceptions for size, trust, or urgency.
Red flags that the line is approaching
- The client offers to share the words "so someone responsible has a copy"
- An estate draft wants the phrase appended "for the executor"
- Staff offer to photograph or scan a backup card "for the file"
- A family member asks you to walk them through access during a crisis
- A sealed "do not open" envelope is offered for the firm safe
- A screen-share where a wallet, QR code, or word list could appear
- A found device after a death, with pressure to "just move it somewhere safe"
Decline scripts
"I'm going to stop you before you show me that. Anyone who has seen those words is a permanent risk to you, and that should never include me. Let's build you a recovery process that doesn't expose them to anyone."
"The binder should say what exists and who to call, never the words themselves. Documents get copied and read by more people than we will ever meet."
"Nobody touches the device and nobody types anything. We secure it physically, write down who has seen what, and bring in a custody specialist before anything moves."
After declining: document it
- Date, what was offered or requested, and that you declined
- What you advised instead, in one sentence
- Which professional the matter was referred to, if any
The note protects the client and you. Practice the moment before it happens: the interactive version of this protocol is the Seed Phrase Red Flags activity.