Top 10 Lost Cryptocurrency Fortunes

Top 10 Lost Cryptocurrency Fortunes


Cryptocurrencies are an emerging technology
that seeks to replace our current financial system (as in, money that is backed by a nation-state). In the modern financial system of credit cards
and online shopping, transactions involving money needs the approval of a bank or credit
card to prove that the exchange of money has taken place. Cryptocurrencies get around this by getting
other crypto users to do complicated math, called mining, to confirm that the transaction
went through. This keeps your shopping habit data out of
the hands and the banks and marketing firms. Since the advent of the first cryptocurrency,
Bitcoin, this new technology has been seen as a scam by some and the future of all financial
transactions by others. Released in 2009, the value of one Bitcoin
peaked at $19,783.06 on December 17, 2017, before crashing back to Earth and bottoming
out at around $4,000. It has since bounced back and in August 2019,
it was hovering around $10,000. Many people have made a lot of money, but
in this list, we look at the many others who have lost huge fortunes dealing with cryptocurrencies. 10. Wired threw away a fortune As the world’s premium technology magazine,
Wired is sent many new products to test and review. One of these products was a Bitcoin miner,
a specialized computer that does complicated math to confirm other people’s Bitcoin transactions. By confirming these transactions the mining
machine has the potential to earn Bitcoins. While the machine was plugged in at Wired
HQ it earned 13 Bitcoins, which would have been worth about $260,000 at the coin’s
peak value. Wired discussed selling the Bitcoins or donating
them to charity but the powers that be thought it would be unethical to “harvest” the
Bitcoins. Michael Calore, a senior editor at Wired,
said that if they kept the machine running the magazine might be seen as promoting crypto. To keep their journalistic integrity and independence
they destroyed the keys needed to use the coins, essentially “burning” them. The coins still exist but without the keys,
there is no way to cash them out. 9. Bitcoin miners endanger nuclear plant to mine
cryptocurrency The faster a crypto-miner solves crypto-math
the bigger the chance they will be rewarded with more crypto. To maintain their profits a crypto-miner needs
faster and more powerful computers. For a while, a lot of crypto mining was taking
place on university campuses around the world. There, students with high IT skills were taking
advantage of the free dorm power and high speed internet to mine crypto. One student at Imperial College of London
mined 30,000 dogecoin by hacking the university computers to mine while everyone slept. As the CPU power to solve the equations increased,
miners moved to use university supercomputers. The National Science Foundation was forced
to ban one researcher for using their expensive-to-run supercomputers to generate Bitcoins. Students using campus IT resources like this
cost universities a fortune and new students are threatened with expulsion if they are
caught mining. All this mining requires custom software that
frequently has malware buried in the code. These have the potential to open the door
to outside parties, allowing the hacking of university supercomputers and their university
high speed internet connections. At St. Francis Xavier University in Nova Scotia,
Canada, cryptocoin mining was the cause of an attempted cyberattack that shut down its
network for four days. Worryingly, it’s not just young students
taking advantage of high speed government computers. Risking another Chernobyl disaster, workers
at the South Ukraine Nuclear Power Plant cooked up a scheme to mine on the job. They hooked up their mining rigs to the plant’s
internal network and sat back watching the supercomputer rake in the crypto. What they didn’t realize (or didn’t care
about) was that their mining rigs opened up a back door to the internet, allowing anyone
to hack the nuclear plant and do whatever they want. 8. Man throws away 7,500 Bitcoins Instead of physically holding money or a coin,
crypto users use a private key — a long text string, sometimes more than 50 characters
long; not something you can easily memorize. People either write them down or save them
on their computers. Cryptocurrency is famous for being decentralized
and as such there is no help desk, no customer service and, most importantly, no backup or
“god mode” to recover lost crypto. To do anything with cryptocurrency you need
to have the key for the coin. Years ago, Syl Turner did some Bitcoin mining
and for his efforts made about two Bitcoins. He forgot all about them and during some computer
maintenance, he reformatted his drives and erased the keys for the two coins, making
them forever out of reach. James Howells was also a crypto miner in the
early days of Bitcoin. He eventually gathered 7,500 Bitcoins and
stored them on a hard drive. In 2013 he accidentally threw the hard drive
away, with all the keys for his Bitcoins. The precious keys, along with all his other
trash, ended up at a local dump. In 2017 at the peak of Bitcoin value, his
buried Bitcoin treasure would have been worth about $150,000,000. This plot point may sound familiar, as it
was used in the hit HBO show Silicon Valley. On that show, billionaire investor Russ Hanneman
has his minions combing the city’s dump looking for a thumb drive with $300 million
worth of Bitcoin on it. In another story line of the same season,
the Silicon Valley crew created their own cryptocurrency, Gilfoyle’s “Pied Piper
Coin.” 7. Bitcoin mixup One of the curious features of Bitcoin (or
flaw depending on your view) is that transactions are public. You can’t see the identity of who is transferring
their coins, but you can see the actual transactions take place. A number of companies specialize in tracking
crypto moving through the interwebs. One of these companies, Chainalysis, identify
wallets that are linked to criminal activity. Their blockchain analysis was key to identifying
two rogue FBI agents who had been stealing Bitcoins from criminals. Often it takes a while for the transfer of
Bitcoins to be approved by miners. To speed up the confirmation process users
can offer a bonus fee. One unlucky user accidentally mixed up the
amount he wanted to transfer and the bonus fee. In April 2016 Bitcoin was worth about $580. On April 26 that year, someone wanted to transfer
291.241 BTC which at the time was worth about $168,920. To get the transaction done quickly the user
offered a fee of 0.0001 BTC (about 6 cents). However, they flipped the amounts and mistakenly
transferred 0.0001 BTC (about 6 cents) for a bonus fee of 291.241 BTC (about $168,920). 6. $200 million for a pizza Without the ability to quickly and easily
transfer cryptocurrency, the crypto concept is dead in the water. Mainstream adoption of cryptocurrency is the
hope of everyone who holds some sort of crypto coin. Some of the biggest cheerleaders of crypto
are its celebrity backers. The Winklevoss twins (Cameron and Tyler of
Facebook infamy) have been lobbying behind the scenes to push crypto into the mainstream,
and have even developed an exchange system called Gemini. (The twin star sign… get it?!) Also pushing crypto is Ashton Kutcher, who
famously donated $4 million in crypto coin XRP to TV daytime talk show host Ellen’s
charity. These weren’t the first hype events and
in its history crypto in no stranger to publicity stunts. In its infancy, it took a lot of technological
prowess to use Bitcoins. On May 22, 2010, to encourage adaptation and
cash in on some internet fame Laszlo Hanyecz ordered a pizza for 10,000 Bitcoin. This was probably the first real-world transaction
involving cryptocurrency. At the time Bitcoin’s value was extremely
low but at its price peak that 10,000 Bitcoin pizza would have been worth about $200,000,000. 5. Mt. Gox It is possible to keep your crypto in an electronic
“wallet.” This can be in the form of a physical thumb
drive you can keep in your pocket. Other wallets might take the form of a file
or program on your computer. However, for ease of use, some people prefer
to keep their crypto in exchanges which act like banks or investing companies. One of the first of these was Mt. Gox. Launched in July 2010, in three years it was
handling over 70% of all Bitcoin transactions worldwide. In 2014 the company closed its doors when
it was revealed that most of the coins it was storing were missing. Years of investigations found that almost
right away nefarious actors were stealing Bitcoins totaling about 600,000, which at
Bitcoin’s peak value would have been worth about $12 billion. Complicating the settlement of account holders
is the extreme rise of the value of Bitcoin. Mt. Gox shut down in 2014, and a small number
of its Bitcoin holdings were recovered. However, since then the value of Bitcoin has
soared. That small amount of Bitcoin that was recovered
is now worth much more than the 2014 value of the stolen coins. Mt. Gox account holders were on the way to
getting their fortunes back but now some of them are suing for a bigger piece of the pie. One of the key individuals in the recovery,
Andy Pag, says, “The more bitcoin’s price goes up, the more vultures are circling around. My personal worry is that we’re just going
to be bogged down in litigation.” If the lawsuits ever end some people might
actually get their money back. 4. Cryptocurrency and the environment People around the world are just now starting
to understand that giant fortunes mean nothing if the world as we know it is crushed under
the full weight of climate change. In that sense, one of the biggest losers of
the crypto movement has been the environment. Modern society’s energy consumption and
the never-ending need for more power is one of the main drivers of climate change around
the world. The most efficient way to be a successful
miner is with endless racks of computers powered by the cheapest electricity available. The bigger the number of computers the higher
the power consumption. Mining has become such big business that it
consumes more energy than the entire nation of Switzerland, pushing up the demand for
energy and contributing heavily to climate change. While some suggest that this can be offset
by using renewable energy, others argue the push should be to convert all the world’s
fossil fuel generation into renewable energy, then focus on creating power for the crypto
industry. 3. The town that lost big Early adopters of new technology are sometimes
big winners, but more often they are big losers. Some of these early adopters are communities
that are looking for novel ways to invest their town’s money. One of these small towns was in the Lone Star
state. Rockdale, Texas is the site of a giant coal
deposit. In the ’50s this caused the town to boom
when Alcoa built an aluminum smelter that used the cheap energy produced by mining and
burning coal. Globalization caused the plant, and then the
mine, to close when it couldn’t compete against dirt-cheap aluminum produced in the
third world. Bitmain, a Chinese crypto mining company,
was seen as the town’s savior when it announced it would build a giant computer array in the
town. This would take the form of huge warehouses
full of computers that would use the cheap electricity of the nearby coal-powered plant. These computers would do nothing but mine
Bitcoins. The town invested a fortune in hopes of luring
the company to set up shop, but it all went nowhere when Bitcoin’s price fell, making
the project unviable. When its fortunes were on the rise Bitmain
was once going to release an IPO and sell stock. Since then they have abandoned that plan and
are in survival mode. 2. In death do us part On April 16, 2018, Matthew Mellon of the Mellon
banking fortune died of a drug-related heart attack in Mexico. To his grave, he also took the location of
the crypto keys to a huge amount of Ripple coin (XRP), another popular type of cryptocurrency. Before his death he held an estimated $1 billion
in Ripple. Without the keys none of the XRP coin can
be used. QuadrigaCX is a Canadian cryptocurrency exchange
founded by Gerald Cotten. On December 9, 2018, Cotten died under mysterious
circumstances of Crohn’s disease while opening an orphanage in India. As the founder of the company he held all
the passwords to access QuadrigaCX — all of which were lost when he died. About $250 million Canadian (roughly $190
million in the US) owed to its 115,000 customers is still missing. 1. Stolen treasure With the advent of personal computers and
the internet, early on there simply didn’t exist many people with the knowledge to criminally
take advantage of the situation. This was beneficial to the rapidly expanding
user base that very often did not have any idea how the technology they used worked. Now, criminals and state sponsored hackers
have stepped up their game and stepped out of the shadows to take advantage of an internet
filled with security lax devices. Since their inception, cryptocurrencies have
been difficult to use and almost totally dependent on being stored and used on electronic devices. Such devices are often left unsecure by oblivious
users and are easy prey to hackers and scam artists. In the first half of 2018 $1.1 billion was
stolen through various scams and unauthorized access of unsuspecting electronic devices. With the internet allowing criminals to operate
across borders with little to no police presence, these sort of attacks are only going to get
worse.

75 thoughts on “Top 10 Lost Cryptocurrency Fortunes

  1. I got an email just. A couple days ago that. 13,480.42 in bit coins has been. Added to my account problem is. I don’t have a bit coin account. Can’t open or delete the dam thing either.

  2. i was a regular user of QuadrigaCX. that guy didn't die. suddenly went to india for no reason, no body, no nothing, and as if he was the only one with the keys, like he just kept them in memory. lol, yeah right. meanwhile, his wife suddenly bought a bunch of properties worth tens of millions of dollars. private investigators are finding all kinds of holes, and instances of money laundering and insider trading and such. i fortunately only lost a few hundred bucks, while some lost their entire savings. it's one one of the most controversial cases ever, pretty exciting drama for us Canadians, thats for sure.

    there's a whole class action lawsuit and investigation and its pretty interesting to look into.

  3. If cryptocurrency becomes the norm i shall starve to death! I didn't understand anything about mining crypto… what so there's digital money in my pc…..

  4. Love the videos, the one thing though number nine, it’s not “ripple coin” XRP It is just XRP. The company ripple use his XRP similar to the way Exxon uses oil, but they do not own it

  5. Bigger fool theory at work. On the other hand, you probably don't understand bonds either. Better stuff your mattress until the air clears. But then your savings might be confiscated for "money laundering". Let's face it, you are screwed.

  6. So the two guys who died with the password keys to company money should not have had a funeral burial . No one person in a company should have only access key.

  7. It is important to note that despite BTC finding some support around its current price levels, one technical indicator may point to the possibility that the crypto will soon erase all of its recent gains and plummet towards $7,300 – which is where it was trading at prior to its meteoric rally that was incurred late-last month. For me, My advice for investors & newbies is to take advantage of Mr Ivan’s program, a pro trader who’s is helping investors accumulate more bitcoin through his amazing trading strategy, with his program I went from having 2.5btc to 9btc in just 3weeks. You can reach him on *[email protected] or *Whatsapp_+1(516) 259 2418-

  8. It you're looking for anonymity then crypto is not what you would want to use. Unless you use a coin with a private blockchain (which defeats the purpose of a decentralized currency) then you're just making things easier for cops. The blockchain is an open distributed database and using it as money is just one app on the system. You could use it for smart contracts, asset tracking, to verify goods, track birth certificates. It solves the problem of having another party verify stuff. The cryptography is the verifying entity here therefore 'in cryptoghaphy we trust'.

  9. I made mucho money with Quadriga in 2018 early. Got out when I made my money. Cotten is still alive , the guy faked his death ran away with a LOT of money

  10. Why is an annoying young man telling me to buy cryptocurrency in an advertisement in this video? Doesn’t Youtube know I am old and would never do such a thing?

  11. So your saying I may get some of that MtGox money back huh…🤨 I lost 98 coins when they went down..I’ve gotten no responses 😢

  12. The cryptocurrency fairy tale is entertaining but when you start regurgitating Al's talking points on Global Warming/cooling/climate change it was over.

  13. Simon, its not "Global Warming" nowadays the current buzzword is "Climate Change", well at least at the moment before they change it for a new buzzword.

  14. I remember the early days of Bitcoin and because I didn't fully understand the concept of financial ledgers, perceived value and attached value, like I do today, I didn't download the miner program and get mining on a dual core CPU PC.

    If only someone had explained it in 2009, and used the gold refinement industry as a reference, I'd not be skint now!

  15. I mined a bunch of BTC about 7 years ago when I was in highschool when it was worth almost nothing because I had a nice rig and wanted to buy stuff from the dark web. Never ended up buying anything and the rig had a catastrophic failure a year or so later, probably from the intense 24/7 mining. Not sure how many BTC I lost but I really don’t want to know

  16. Plural of Bitcoin is Bitcoin, 'bitcoins' isn't used.

    it's a nitpick, sure, but you said it "bitcoins" so many times

  17. Crypto currency is a great idea. However you shouldn't think you will get rich. I dont buy a bunch of euros hoping that I would get rich after the brit exit

  18. And yet there has been contentions to Bit coin and a huge pedo ring just recently, and as this shows . Plenty of scams and games .

  19. And this is why people should have wills and why we will always have a need for physical banks… they are the keepers of safe deposit boxes behind massive vault doors. If so many of these entries had just kept their cryptokeys in a secure location… like written down on archival safe paper and tucked into a safety deposit box… people and institutions wouldn't be out millions. Better yet… how about just sticking to currency that is ACTUALLY backed by gold or silver?

  20. The Quadriga guy is from my hometown in Canada, the whole story doesn't add up at all. Investigators found he was misappropriating crypto funds into his personal account, a lot was missing or unaccounted for. Before he left to India, he transferred his wife a bunch of real assets (she returned willingly during the investigation)… He died in rural India (hard mode to travel, let alone recovering a body) while building an orphanage, from a disease he likely had all his adult life… Oh and he issued his last will 2 weeks before his trip, leaving his wife as the executor… He is 30 years old.

  21. For cryptocurrency to replace credit cards for online purchasing, everyone will have to understand how to use it.

    Not gonna happen.

  22. "bottoming out at about four thousand dollars" – fail to mention that that it was significantly less than that before the spike started. Also fail to mention that it has since climbed back over ten thousand. Every time I see you reference cryptocurrency I get the strong impression that you are letting your dislike of it bias your commentary.

  23. a perfect for the following terrorist, drug cartels etc., I'm sure the the pedo Epsstupid had his fortune transferred this so the victims could never get it , I love this old saying for every poison there is an antidote for those who don't believe haven't dedicated the time to find one,

Leave a Reply

Your email address will not be published. Required fields are marked *