As Bitcoin breaks the $100,000 milestone, countless investors and enthusiasts are celebrating the historic achievement. However, for an unfortunate few, this milestone serves as a painful reminder of lost opportunities. If you’ve ever misplaced a Bitcoin wallet, you’ll understand the gut-wrenching feeling of knowing your wealth is out of reach.
Tales of forgotten passwords, destroyed hard drives, and lost seed phrases have become legendary in the crypto world. According to Chainalysis, about 20% of Bitcoin’s total supply is lost. But what does that mean in numbers?
Let’s explore the 8 biggest lost Bitcoin wallets and the staggering fortunes they represent.
Here are some of the most infamous Bitcoin crypto wallets that have been lost forever, ranked from smallest to largest amounts of lost BTC.
Wallet ID/Victim | Year lost or last activity | Amount of BTC |
---|---|---|
Stefan Thomas | 2011 | 7,002 BTC |
James Howells | 2013 | 8,000 BTC |
QuadrigaCX Wallet | 2019 | 26,350 BTC |
12tkqA9xSoowkzoERHMWNKsTey55YEBqkv | Never sent BTC | 28,151 BTC |
12ib7dApVFvg82TXKycWBNpN8kFyiAN1dr | 2010 | 31,000 BTC |
1LdRcdxfbSnmCYYNdeYpUnztiYzVfBEQeC | Never sent BTC | 53,880 BTC |
Mt. Gox hack wallet | Never sent BTC | 79,957 BTC |
Satoshi wallets | 2010 | ~1 million BTC |
In another high-profile case, Stefan Thomas, a German programmer, lost access to 7,002 BTC, given to him in 2011 for making a video, after misplacing the password to his encrypted USB drive. With only two password attempts left before the device permanently locks, Thomas has resigned himself to living without the fortune, now valued at $700 million.
James Howells, a British IT worker, famously lost 8,000 BTC in 2013 after accidentally discarding a hard drive containing his wallet keys. At today’s prices, that equates to over $800 million. Howells has repeatedly petitioned his local council for permission to search a landfill, offering millions in reward, but his requests have been denied. He’s currently suing the Newport council.
The Canadian exchange QuadrigaCX collapsed in 2019 after its CEO, Gerald Cotten, died unexpectedly. Cotten was the sole holder of the exchange’s private keys, locking away 26,350 BTC and leaving users with no recourse. This loss, valued at over $2.6 billion, remains one of the largest in Bitcoin history.
There are many wallets addresses from the early days of Bitcoin. A number of these wallets have remained inactive for over a decade. One of them is 12tkqA9xSoowkzoERHMWNKsTey55YEBqkv, holding over 28,000 BTC ($2.89 billion). The assets are effectively inaccessible since the wallet never did any outgoing BTC transactions.
Another wallet from the Satoshi era has also remained dormant for more than 14 years. The last time this wallet (12ib7dApVFvg82TXKycWBNpN8kFyiAN1dr) ever sent BTC was back in July 2010. The lost assets are currently worth around $3.2 billion.
This wallet has remained dormant with users occasionally sending BTC to it. In its entire history, the wallet (1LdRcdxfbSnmCYYNdeYpUnztiYzVfBEQeC) has never sent any Bitcoin to another address. It remains unclear what exactly happened but for now, it’s safe to assume that the $5.5 billion within it is lost.
The Mt. Gox hack was one of the largest events in Bitcoin’s price history. When it first launched in 2010, the Japanese exchange Mt. Gox was handling over 70% of all Bitcoin transactions. The exchange was hacked multiple times between 2011 and 2014, leading to the loss of more than 650,000 Bitcoins.
To this day, one wallet associated with the hacks is still holding 80,000 BTC. Since authorities monitor it, selling the assets will be extremely difficult, rendering them “lost”.
Finally, the most significant “lost” wallets belong to Satoshi Nakamoto, Bitcoin’s anonymous creator. Satoshi’s wallets, containing approximately 1 million BTC, have remained untouched since 2010. Whether these Bitcoins are permanently inaccessible or intentionally held dormant is one of crypto’s greatest mysteries. At current prices, this fortune is worth over $100 billion.
Bitcoin itself isn’t technically lost, it’s still recorded on the blockchain. What’s lost is access to the Bitcoin, typically due to issues with private keys or seed phrases. Since these credentials are required to verify ownership and initiate transactions, losing them renders your Bitcoin effectively irretrievable.
Here are some of the most common ways people lose their Bitcoin wallets:
The seed phrase, or recovery phrase, is a series of words that act as a backup for your private keys. Without it, you cannot restore access to your Bitcoin. For instance, Stefan Thomas’s case highlights the importance of securely storing your seed phrase. He misplaced his backup, leaving 7,002 BTC locked in his device.
Physical Bitcoin wallets, such as paper wallets, are highly vulnerable to environmental hazards. For example, BTC holders can lose access to their assets when their paper wallet is destroyed in a house fire. Without backups, these losses are irreversible.
Exchange wallets can also become inaccessible if the exchange is hacked, shuts down, or mishandles private keys. A prime example is the QuadrigaCX case, where 26,350 BTC became permanently locked after the CEO’s unexpected death. Users relying on third-party services must be cautious, as access is only as secure as the platform itself.
When a wallet owner dies without sharing their private keys or seed phrase, their Bitcoin often becomes inaccessible. This was a significant issue in the QuadrigaCX collapse, as Gerald Cotten was the sole key holder. Cases like this emphasize the need for planning in cryptocurrency ownership.
Some wallets remain inactive for years, often due to forgetfulness or loss of access credentials. While not technically “lost,” these dormant wallets, contribute to the growing pool of inaccessible Bitcoin.
While the risks of losing a Bitcoin wallet are significant, there are several steps you can take to ensure the safety of your holdings:
As Bitcoin continues its meteoric rise, the stories of lost wallets serve as a stark reminder of cryptocurrency’s unique challenges. Blockchain technology offers unprecedented security but this can be a double-edged sword, placing significant responsibility on individuals to safeguard their access credentials.
If you’re holding Bitcoin or any other cryptocurrency, make sure you follow the best practices for wallet management. After all, the last thing you want during Bitcoin’s next all-time high is to realize your wealth is forever out of reach.