Stefan Thomas is facing a race against time to recover his 200 million euro Bitcoin fortune before his forgotten password locks him out for good. Thomas, a German-born programmer residing in the bustling heart of San Francisco, finds himself in a predicament that seems straight out of a futuristic novel rather than reality.
Thomas, who gained some recognition for his instructional film “What is Bitcoin?” back in 2011, was gifted 7,002 Bitcoins as a token of gratitude. At the time, Bitcoin was still a nascent concept, valued at less than a euro before soaring to over 20 euros. His film, which simplified the idea of digital currency, garnered around 10 million views on YouTube and played a role in popularizing Bitcoin.
As the value of Bitcoin skyrocketed, so did Thomas’ digital wallet. In early 2021, one Bitcoin was worth over thirty thousand euros. However, Thomas’ ability to access his funds hinged on a small device known as the IronKey storage gadget.
The IronKey allows for ten attempts at entering the password before locking permanently. Thomas has tried eight times over the years, but his original password was lost with a piece of paper. The New York Times captured Thomas’ anguish in interviews, highlighting his resignation to the possibility of never recovering his millions of euros. He contemplated letting go for the sake of his sanity.
Thomas’ situation is not an isolated incident in the Bitcoin space. Approximately 20% of all BTC is considered lost due to forgotten keys or passwords. Tragic stories emerge of Bitcoin owners passing away without leaving access to their digital wealth, with hard drives containing thousands of BTC ending up in landfills.
Recognizing the mistakes of the past, Thomas shared his painful experience on Twitter as a cautionary tale. He urged others to regularly test their backups to ensure they are still functional, emphasizing the importance of foresight. Doubting the wisdom of the decentralized banking philosophy promoted by Bitcoin, Thomas sarcastically questioned whether people make their own shoes, drawing a comparison to the complexities of handling one’s finances.
Despite the grim outlook, Thomas remains optimistic. He keeps the IronKey secure, hoping that advancements in cryptography will one day crack the code to his digital safe. Former Facebook security head Alex Stamos jokingly offered to assist in unlocking the IronKey in exchange for a ten percent share of the earnings.
Fortunately, Thomas’ story extends beyond the locked Bitcoin. His tenure as Chief Technology Officer at Ripple has cemented his status as a significant figure and seasoned veteran in the world of cryptocurrencies. He still maintains access to other Bitcoin holdings, ensuring his continued involvement in the evolving narrative of digital wealth.