🌎 Lost Cryptocurrency Stories

Cautionary Tales: 5 Stories of Lost Cryptocurrency

When it comes to cryptocurrency, investors need to be extremely cautious in managing their assets. In this article, we’ll look at five stories of lost cryptocurrency, highlighting the importance of safe storage practices.

How Not to Lose Bitcoins: James Howells Case

In 2013, James Howells, a British IT worker, accidentally threw away his hard disk containing the private key to his Bitcoin wallet, which held approximately 8,000 Bitcoins. Despite years of effort to retrieve the disk from the landfill, his attempts were unsuccessful.

Howells had mined the Bitcoins in 2009 but forgot about them for several years. When he realized their value, he tried to locate the hard disk but was unable to do so. The hard disk was allegedly disposed of in a black sack along with other unwanted belongings by his then-girlfriend, Halfina Eddy-Evans.

“The computer part had been disposed of in a black sack along with other unwanted belongings, and he begged me to take it away, saying, ‘There’s a bag of rubbish here to be taken to the tip.’ I had no idea what was in it but I reluctantly dropped it off at the local tip on the way home from going on the school run… I thought he should be running his errands, not me, but I did it to help out… Losing it was not my fault.”

Howells’ case highlights the importance of safe storage practices and the potential consequences of losing access to one’s cryptocurrency.

IronKey on My Back: The Stephan Thomas Case

Stephan Thomas, a U.S. programmer, was paid in Bitcoin for creating an animated educational video in 2011. He stored his 7,002 Bitcoins on a USB hardware wallet called IronKey but lost the paper with the password written on it.

Thomas tried everything to crack the code, including hiring cryptography experts and using hypnosis. However, after eight attempts, he was unable to access his funds.

Crypto Wallet Forgets the Password: Peter Schiff Case

Peter Schiff, a well-known Bitcoin critic, took to social media to share a screenshot of his crypto wallet app, showing that he couldn’t enter the correct password. He claimed that his wallet had “forgotten” his password, but later admitted that he had mistaken his PIN for a password.

Schiff’s story highlights the importance of understanding how to use crypto apps properly and the risks of losing access to one’s funds due to user error.

Orange Paper: Mark Frauenfelder Case

Mark Frauenfelder, a writer and co-founder of BoingBoing, bought 7.4 Bitcoins in 2016 and stored them on a hardware wallet by Trezor. However, he lost the orange paper containing his 24-word seed phrase and PIN code.

Frauenfelder tried to recall his PIN code using hypnosis, but his attempts were unsuccessful. He eventually sought help from a hacker who managed to retrieve his PIN and seed phrase.

Professor Learned the Lesson: Alexander Halavais Case

Alexander Halavais, a professor of social technology, bought $70 worth of Bitcoins in 2010 as part of an educational exercise. However, he lost access to his wallet and didn’t think about the coins for several years.

Halavais’ story highlights the importance of keeping track of one’s cryptocurrency and the potential risks of losing access to one’s funds.

These five stories serve as cautionary tales for cryptocurrency investors, emphasizing the importance of safe storage practices, proper use of crypto apps, and keeping track of one’s funds.

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