A bitcoin horror story, and one every trader here can related to! This was a painful read, but almost every trader I know has been through something like this, just not this extreme! I feel bad for the guy, I can imagine there will be hundreds of more stories like this as time goes on and volatility and margin trading in crypto does its job. Jun 28, · One of the more cautionary tales of Bitcoin losses comes from Australian journalist Derek Rose. In , Rose cashed in his $70, retirement account and poured it all into cryptocurrencies. At. Jan 24, · Here are the top three worst Bitcoin horror stories of all time: 1. The spring cleaning mistake. Back in , IT worker James Howells lost 7, Bitcoins after he accidentally disposed of an old hard disk which contained his private key. It’s a well-known story in the cryptocurrency world that Howells made this catastrophic crypmoney.de: Sarah Voon.
Bitcoin trading horror stories4 Worst Cryptocurrency Horror Stories | crypmoney.de
Even China has issued warnings before issuing crackdowns. Still, with the trust and comfort level of some governments toward cryptocurrency in flux, it might be wise to be wary and prepare to dive for cover if needed.
We all forget passwords. Many of us have also lost real-world wallets with cash inside to pickpockets or carelessness. But forgetting or losing the key to your digital wallet? My Bitcoin mystery is solved. I mistook my pin for my password. When Blockchain updated their app I got logged out. I also never had a copy of my seed phrase. Honest but costly mistake! The size of this cryptocurrency graveyard? But in this increasingly digitized world, cryptocurrencies sometimes do follow their owners into the grave.
Such was the case of crypto millionaire Matthew Mellon, who tragically passed away in on his way to a substance abuse rehab facility in Mexico. Mellon had told friends that his cryptocurrency fortune was stashed away in a number of secret accounts known only to him, and that the keys were hidden in cold storage all across the country.
When he died, his family and heirs found themselves without access to either accounts or keys. The democratic process has ample room for error. Some have posited that the issues in voting provide an opportunity for reform by blockchain , but this ostensible solution is not without risks. To date, it has been used in more than 67 elections from local school boards through federal level.
But Voatz has had numerous security concerns pointed out that have given people the shivers, including but not limited to its vulnerability to hacking, vote manipulation, and the exposure of confidential personal information.
In , an FBI investigation was launched into an attempt by University of Michigan cybersecurity students to hack into the app during the midterm election. While unsuccessful, the attempt highlighted the potential for data breaches as highlighted by multiple audits. The blockchain startup world is littered with corpses.
Of those born, the vast majority do not survive for long. Even the most seemingly promising blockchain startups have died young.
One such blockchain startup was Dala, a South African company conceived in April to bring financial services to the emerging African market. The largest exit scam to date involved Vietnamese company Modern Tech, which launched two ICOs: one for a Pincoin token, and another for iFan, supposedly a social network token for celebrities. The perpetrators vanished like vampires into the night. Enigma is a security and cryptography system that ironically suffered a devastating security breach in ahead of its ICO.
Enigma took responsibility for its poor security by reimbursing investors , at no small expense of their own. Enigma has since also been charged by the U. OneCoin was a company that sold cryptocurrency mining opportunities.
Investigations carried out across the U. While certain key figures in the OneCoin scandal have been arrested including one of the two co-founders and a family member of the other , the ostensible mastermind and other co-founder Ruja Ignatova remains at large, living in the shadows of a false identity in Frankfurt, according to a BBC investigation. Though hackers are generally after money, customer data has also been stolen. There are people who did you wrong. People who mocked your dreams of a Bitcoin revolution.
As bad as that is, at least no bodily harm came to Cody. Investigators believe that the suspects murdered the victim after a fight, when they tried to force him to transfer his BTC to their accounts. Even more terrifying — one of the suspected murders is said to be a close friend of the victim.
What if you kept a pile full of gold bars in your garage? Do the same with your Bitcoin. Oh, and keep your Bitcoin in an offline, cold wallet. These are the very same people who end up holding placards for Bitcoin that are long gone and never to be recovered. Like so:. They say the very same qualities that initially attracted you to a partner will be the very same qualities that annoy you about them down the line. Like this poor guy who accidentally sent Bitcoins to the wrong address.
And this newbie who made the same mistake. As well as countless others who have unwittingly gifted their precious coin to some total stranger. And of course, there are the folks who sent to the right address…but sent too much.
Like this redditor who accidentally sent 10x the BTC — only to have it returned to him by the fair-minded recipient. Unfortunately, not everyone is such a gentleman. The world of Bitcoin is a harsh one. So it goes without saying that you really, really need to keep it safe.
A hugely common mistake is to forget the virtue of pen and paper over digitally stored data. Like in the case of Stefan Thomas, who wisely made three copies of his private keys — on an encrypted USB stick, a Dropbox account, and a virtual machine — and then promptly lost them all.
Get your keys tattooed on a difficult part of your body if you must. Whatever it takes to keep that information private, but safe. Unfortunately, James Howells was burned by his own efficiency. His case was so upsetting that even the BBC covered it with aplomb.