The meteoric rise of crypto has not only been the greatest creation of wealth in the last decade but also an incredible harbinger of wealth destruction. While numerous fortunes were built on the buy and hodl strategy, some of these were lost to time or technology, depending on your point of view. Investors that haphazardly tried their hand at crypto found out quick that this isn’t for weak hands or weak minds. A number of investors (or firms) that bought in early and didn’t take the proper precautions to secure the bag–whether it was their hard drive or password–are kicking themselves for the fortunes they could have made. Here, 24/7 Wall St. is taking a closer look at people and firms that lost millions in the crypto-trade.
To identify some of the biggest crypto losses of all time, 24/7 Wall St. reviewed various online publications and news sources regarding the crypto markets and exchanges. We included supplemental information regarding the amount lost (or recovered), where it occurred, and what happened to the crypto.
Here is a look at some of the biggest crypto losses of all time:
Why Are We Covering This?
Reporting these cases helps readers understand practical risks (custody choices, backups, inheritance planning), exposes recurring weak points in wallets and exchanges, and highlights regulatory and ethical gaps in an industry still finding its safeguards. Beyond technical caution, the stories show the social cost—ruined retirements, legal battles, and communities left wondering who’s accountable. If you own crypto, work in finance, or cover policy, these narratives are both warning and roadmap: they explain what went wrong and how to avoid the same fate.
Stefan Thomas
- Location: Germany / USA
- Amount of BTC: ≈7,002 BTC
- Current value: $875,109,960
Stefan Thomas was a programmer who bought into Bitcoin in the early 2010s. He accumulated a fairly large amount (commonly reported as roughly 7,002 BTC) on an encrypted IronKey USB device. The drive is protected by a passcode that allows only ten incorrect attempts before it irreversibly wipes itself. Over the years Thomas forgot the password and has reportedly used most of the guesses with only a very small number of attempts remaining before permanent deletion. His story has been widely touted as a cautionary tale about private-key or cold storage. It shows how user error and weak backup practices can put a fortune at risk.
James Howells
- Location: Newport, Wales, UK
- Amount of BTC: ≈7,500–8,000 BTC
- Current value: $937,350,000 to $999,840,000
In 2013, James Howells accidentally threw away a laptop hard drive that contained the private keys to a large Bitcoin wallet. This reportedly had about 7,500 to 8,000 BTC. Ultimately, the drive ended up in Newport’s Docksway landfill, and ever since Howells has campaigned for permission to excavate the site and recover the device. However, local authorities have repeatedly declined, citing environmental risks, high costs, and uncertainty about whether or not the drive still exists. Along with the campaigning, Howells has offered a finder’s fee for the drive, but it still remains lost in a huge heap of garbage.
QuadrigaCX / Gerald Cotten
- Location: Canada (headquartered in Vancouver; legal proceedings in Nova Scotia)
- Amount of BTC: ≈C$190–260 million (customers’ claims / assets inaccessible)
- Current value: ≈C$190–260 million (customers’ claims / assets inaccessible)
In December 2018 QuadrigaCX’s founder and CEO, Gerald Cotten, died suddenly while traveling in India. The exchange stopped withdrawals and publicly noted that Cotten was the only person who held the cold-wallet private keys for large portions of customer funds. Accordingly, thousands of users found their accounts frozen with access denied. These claims later totaled roughly C$190–260 million in missing or inaccessible funds. The court-appointed reviews that followed raised some serious questions about bookkeeping, commingling of funds, and operational controls. Some investigations even suggested mismanagement or fraud as opposed to a simple loss of keys. Ernst & Young was appointed to monitor the firm during bankruptcy proceedings.
Laszlo Hanyecz
- Location: Jacksonville, Florida, USA
- Amount of BTC: 10,000 BTC
- Current value: $1,249,800,000
In May 2010, programmer Laszlo Hanyecz completed a feat that will live forever in the lore of Bitcoin. He posted on the BitcoinTalk forum offering 10,000 BTC in exchange for two pizzas (now worth about $1.25 billion). A fellow user accepted and ordered two Papa John’s pizzas. Hanyecz’s purchase is celebrated annually as “Bitcoin Pizza Day” and is often framed as the moment cryptocurrency entered real-world commerce. While these coins weren’t “lost” in a sense, the trade solidified BTC as a valid currency and gave credence to early adopters of digital currency long before its exponential appreciation.
Mt. Gox
- Location: Tokyo, Japan (global user base)
- Amount of BTC: ≈650,000–850,000 BTC (≈200,000 BTC later recovered)
- Current value: $81,237,000,000 to $106,233,000,000
In February 2014 Mt. Gox, a Tokyo-based firm that once handled the majority of global Bitcoin trading, abruptly halted withdrawals and filed for bankruptcy after revealing it had lost hundreds of thousands of customer bitcoins. Early on, the company cited a loss of roughly 750,000 customer coins plus about 100,000 of the exchange’s own holdings (totaling about 850,000 BTC). However, there was a later discovery of 200,000 BTC in an old wallet that reduced the missing balance. Investigations by security researchers pointed to long-running thefts from hot wallets as well as operational failures. Ultimately, the company’s CEO, Mark Karpelès, was arrested and later charged with data manipulation and other related offenses.
WIRED Magazine
- Location: USA
- Amount of BTC: ≈13 BTC
- Current value: $1,624,740
WIRED’s “loss” was deliberate and editorial. The staff acquired a small mined stash of Bitcoin while reporting on the technology in 2013, then chose to render the private-key material permanently inaccessible rather than risk a real or perceived conflict of interest. Instead of holding the BTC or selling it (which would have turned the newsroom into a market participant), the team destroyed the keys as an ethical safeguard. The staff regarded this as a conscious, public statement about journalistic independence and ethics.
Mark Frauenfelder
- Location: USA
- Amount of BTC: 7.4 BTC
- Current value: $924,852
In 2016 Mark Frauenfelder bought about 7.4 BTC and stored it on a Trezor hardware wallet. Months later he forgot the device PIN and even lost the paper backup containing the 24-word recovery seed. Repeated incorrect PIN attempts triggered the wallet’s escalating time-lock feature, turning access into a slow, agonizing process. Frauenfelder tried numerous recovery attempts, some of which were fairly unorthodox methods like hypnosis. Eventually, he connected with a young security researcher who used a firmware-level exploit to extract the seed and restore access.
Michael Stay
- Location: Unknown (client contacted Stay via LinkedIn)
- Amount of BTC: ≈ $300,000
- Current value: $300,000 (at the time of recovery
In 2019–2020 cryptographer Michael Stay was contacted by an anonymous person who’d encrypted private-key files inside an old ZIP archive and then forgotten the password. The archive used legacy Zip 2.0 encryption (not modern AES), which left an exploitable avenue for deep cryptanalysis. Stay and a small team spent months working on an attack. What they ultimately did was adapt prior research on ZIP’s 96-bit derived key, wrote custom tooling, used cloud GPU resources and fixed a critical implementation bug that initially stalled progress. The work eventually recovered the key material and liberated roughly $300,000 worth of Bitcoin for the client.
11-year locked wallet recovery
- Location: Europe
- Amount of BTC: 43.6 BTC
- Current value: $3 million (at the time of recovery)
In a high-profile recovery, security researchers led by Joe Grand targeted a Bitcoin wallet that had been dormant and effectively “lost” for about 11 years. Using a mix of advanced blockchain forensics, careful cryptanalysis, and specialized recovery tooling, the team identified weaknesses and patterns that let them reconstruct access to the private key material protecting the funds. Essentially, the researchers reverse engineered a flaw from RoboForm’s RNG to reduce the time for generating a password. After months of work that involved testing hypotheses, validating candidate keys, and ensuring any recovered coins could be securely transferred, the researchers successfully moved 43.6 BTC (roughly $3 million at the time of recovery) worth of Bitcoin out of this wallet.
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