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Crypto horror story: Trader loses almost $2m Bitcoin fortune after password theft

Bitcoin fraud: Victim discusses ‘warning bells’

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Sharing their story to Reddit in a thread titled: “What’s your crypto horror story,” an anonymous user expressed his eye-watering story. The precautionary tale comes as the crypto market has fallen from its peak of nearly $69k to around $57k.

The Reddit user named TomokoSlankard said the seed phrase he kept to use his Bitcoin locked away was stolen.

The user claimed the hackers were able to get into the service which he kept the code on.

The criminals were then able to steal his 33BTC, estimated to cost $1.8 million.

He wrote: “My seed phrase got stolen. It was 33 btc.

“It was worth $600k at the time. Now over $2m.”

When asked how he lost the password, he claimed his “backup server got hacked.”

TomokoSlankard has claimed he had invested just $20,000 amassing his initial fortune.

He further suggested that if the amount had not been stolen from him, he would now be a millionaire.

Some users were sympathetic to the story, with one user, Zancrow249, writing: “That’s painful but not your fault.

“I hope you make much more than that.”

Those considering buying Bitcoin should consider the risks of investing in cryptocurrencies, which are notoriously volatile. Here in the UK, the Financial Conduct Authority (FCA) warned: “If you invest in cryptoassets, you should be prepared to lose all your money”.

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

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“If something can go up several hundred percent in a few weeks, then it should come as no surprise that it can fall just as sharply in a short space of time.

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

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