Many people value Bitcoin primarily because of its decentralization and the anonymity that goes with it.
A recent example from Germany once again makes it clear that this can also have disadvantages and dangers
The German police recently sentenced a man for installing malicious software on other computers, which then mined Bitcoin and transferred it to the hacker’s crypto wallet. Prosecutors confiscated over $ 70 million worth of Bitcoin. The only problem with the matter: Neither the police nor the public prosecutor’s office have access to the said Bitcoin.
Because the fraudster does not reveal the password of the wallet and thus deprives the confiscated Bitcoin of its value. He was sentenced to two years in prison. Public prosecutor Sebastian Murer told Reuters on February 5, 2021 :
We asked him for the password, but he didn’t tell us. Maybe he doesn’t know
The news agency also reported that the prosecution subsequently ensured that the convicted person no longer had access to the BTC wallet. Since the convicted person is very likely the only person to whom the access data is known, it can be assumed that the 1,700 BTC can be regarded as lost.
It’s not the first time Bitcoin has been lost. The New York Times published a current statistic from January 2021 in this regard. This shows that around 20 percent of all Bitcoin have already been lost. It happens again and again that people simply forget the passwords for their crypto walltes or can no longer find them. It was the same with Stefan Thomas, who owned over 7,000 Bitcoins before he lost access to his wallet. As of today (February 9, 2021), Bitcoin is worth over $ 300 million. BTC ECHO reported on the case at the time.