I lost almost $ 2 million worth of Bitcoin fortune when my password was stolen, trader warns amid crypto crash

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A BITCOIN trader revealed how he lost a crypto fortune worth nearly $ 2 million after his password was stolen.

The anonymous Reddit user shared his heartbreaking story in the thread titled, “What’s Your Crypto Horror Story?”.

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Bitcoin and other cryptocurrencies are highly volatile risky investmentsCredit: AFP

He shared his story as the crypto market continues to fall – Bitcoin slumping from its all-time high of nearly $ 69,000 to around $ 57,000.

This is a warning about what can go wrong when investing in the highly volatile and unregulated crypto market.

The user – TomokoSlankard – posted that the seed phrase he used to keep his Bitcoin locked up had been stolen.

He claimed hackers entered the server he stored the code on – the criminals then fled with his 33BTC.

33BTC in today’s money is worth $ 1.8 million.

TomokoSlankard claimed that he had only invested $ 20,000 to build up his initial fortune and that if he had not been robbed, he would now be a millionaire.

Cryptocurrency subreddit user Cupojuice posted the thread earlier in the year asking fellow 13k members for their worst crypto “horror stories”.

He said: “Instead of reading up on everyone’s crypto gainz (not that I don’t like you making money!), I would like to share some horror stories.”

His own tragic tale of loss is how he mined one million Dogecoin in 2014 – only for them his hard drive is broken.

This means that he can no longer recover the money worth around $ 170,000.

However, this sum was just a drop in the ocean compared to poor user TomokoSlankard.

Dang, I’m not a very empathetic person, but even I feel bad for you

Reddit user

“My opening sentence was stolen. It was 33 btc,” the user wrote, and continued, “It was worth $ 600,000 back then. Now over $ 2 million.”

Asked how he lost the password, he said his “backup server was hacked”.

Other users were sympathetic to his plight, while some criticized him for not taking more precautions to protect the money.

Zancrow249 wrote: “It’s painful but it’s not your fault. Hope you win a lot more than that.”

Townhouse-hain added, “Dang, I’m not a very empathetic person, but even I feel bad for you. It sucks! It changes your life. Oh man…”

5 risks of crypto investments

The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.

Consumer Protection: Certain investments showing high returns based on crypto assets may not be subject to regulation beyond anti-money laundering requirements. Price volatility: The significant price volatility of crypto-assets, combined with the difficulties inherent in a reliable valuation of crypto-assets, puts consumers at high risk of losses. Product Complexity: The complexity of some products and services related to crypto assets can prevent consumers from understanding the risks. There is no guarantee that cryptoassets can be converted back to cash. The conversion of a crypto-asset into cash depends on the existing demand and supply in the market. Fees and commissions: Consumers should consider the impact of fees and charges on their investment, which may be higher than those of regulated investment products. Marketing Materials: Businesses may overestimate product returns or underestimate the risks involved.

“It’s so painful to read such messages, I can’t even imagine what it felt like when you realized all that money is wasted,” Batyrsengoku wrote.

“I hope you will earn a lot more in the future.”

Meanwhile, another user added sarcastically: “Nothing you could not have done to prevent this.”

Other traders also shared their wow stories, including user Bks1981 who said he lost 80% of his portfolio in one day after a series of bad trades.

Another added that he lost his Bitcoin after buying it for $ 6, claiming it was stored “f *** knows where”.

Crypto is a notoriously volatile asset in which to invest your money – and experts urge caution when trying to get involved in the market.

Cryptocurrencies are not regulated investments, so there is no safety net if things go wrong and you lose money.

Many cryptocurrencies have a short history, which makes them difficult to understand and predict.

Laith Khalaf, Head of Investments at AJ Bell, said: “Cryptocurrencies are incredibly volatile and that applies in spades to the small new coins entering the market.

“If something can go up by several hundred percent in a matter of weeks, it’s no surprise that it can drop just so sharply in a short period of time.

“As always, the golden rule of crypto is to never invest an amount that you are not prepared to lose in its entirety, so don’t bet the house on it.”

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