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Although Bitcoin has been around for several years, many still don’t understand its complexities. Unlike traditional currencies stored in banks, Bitcoin can easily be lost forever due to user mistakes or other unfortunate circumstances. So, if you are planning to trade or mine Bitcoin, then you may visit https://bitalpha-ai.io/
Coins can be lost due to several possible reasons, such as people forgetting or misplacing their private keys, spending Bitcoin when its value is lower than desired, unknowingly throwing away computers and hard drives which contain vital information like a wallets’ private key, or exchanges dealing with stolen funds. These elements put into perspective the importance of being aware of your surroundings when it comes to handling cryptocurrencies. In this article, we will know the stories of Bitcoin users who lost their Bitcoin.
Some Bitcoin Users Who Lost Bitcoins
Mark Frauenfelder
Mark invested $3,000 in bitcoin in 2016 and sought to ensure the security of his coins with a hardware wallet. Cold storage options are often viewed as being the safest way to store crypto assets; however, it relies on not losing or forgetting password. Many individuals experience frustration when they no longer remember their passwords/PINS but such forgetfulness has substantially greater consequences for holders of digital currencies like Bitcoin.
Mark made the costly mistake of writing down his mnemonic phase and then losing the piece of paper. Everything seemed fine until he realized that he had forgotten his PIN, meaning that he could no longer access his $30,000 worth of coins – nowadays they’re worth much more! Sadly, this reminds us all to be very careful when it comes to backup solutions for sensitive data such as passwords.
After losing access to his wallet, Mark turned to forums and hired people in an attempt to crack the drive. Fortunately, he eventually found somebody who was able to hack into the wallet and recover his coins. While this story had a happy ending, it is not likely that individuals will be able to regain encrypted drives or wallets when they are either forgotten or lost physically.
Mt Gox Customers
In 2014, Mt Gox experienced the biggest bitcoin heist of all time. Originally valued at over $500 million, today the stolen coins are estimated to be worth more than $5 billion. At the time, Mt Gox was handling 70% of all global transactions within the cryptocurrency market and their bankruptcy proceedings followed soon after a massive hack revealed around 740,000 missing coins – 6% of BTC in circulation then. This catastrophic event follows tight on top as one of the most expensive crypto crimes in history.
On February 7, 2014, the suspension of withdrawals from Mt Gox caused a stir in the bitcoin world. Shortly afterwards, all operations were halted and documents leaked that established evidence of a major security breach, causing prices to plummet. This hack has spurred numerous theories alleging bankruptcy before suspensions or internal fraud; however, no solid resolution has been provided for affected customers up until now.
Simon
When Simon used Tor back in 2011, he stumbled upon an illegal marketplace that was selling guns, counterfeit documents and drugs. Impulsively, he decided to purchase a false passport for 10,000 BTC with a 6,000 BTC tip. Little did he know that the value of Bitcoin would skyrocket over the years – ultimately costing him millions.
Two years after Simon completed his bitcoin transfer, a Russian man was arrested for providing money laundering services through the Liberty Finance platform that Simon had used. Fortunately, all exchange funds were seized by the FBI so Simon did not end up losing access to more than $400 million. However, he might have ended up regaining control of these funds if this event hadn’t taken place.
