Ethereum’s founder Vitalik Buterin called for "truly robust wallet solutions" Reduce the chance of crypto-losses.
Buterin said that while there has been a lot of attention paid in recent years to the crypto-hacking, and more than $1.4billion was recently stolen from Bybit crypto-exchange, not enough is being done to help those who’s digital assets are no longer accessible.
"Software bug, forgotten password, lost device, paper wallet burned down in LA fire, upgraded device without backing up data … lots of ways for that to happen," He tweeted.
Buterin also added that there are many victims. "too ashamed" It is important to discuss these losses. "they see no one to blame for themselves."
Reminder: there's also plenty of people who have lost huge amounts of crypto to *loss* rather than theft.
There are many ways that this can happen: software bug, forgotten password or lost device.
Because…
— vitalik.eth (@VitalikButerin) February 28, 2025
The 31-year-old has long been an advocate for social recovery—and wrote about the need for a radical rethink of wallet design back in January 2021.
Buterin claimed at the time that a system of social recovery would enable crypto investors to continue using their wallets in a normal way. "guardians" If they lose access, they can still use the system.
I heard him say backup devices, or even paper WalletsFriends and family or even institutions may end up being guardians. Buterin revealed himself last year that the majority of his crypto assets are kept in multisig Safe.
Earlier this year, Bitcoin exchange River estimated about 1.6 million BTC has been lost forever—and there's no shortage of horror stories out there.
Decrypt has regularly reported on James Howells's battle to recover a hard drive containing 8,000 BTC that he threw away in 2013. It's currently languishing somewhere in a Welsh landfill site.
A Brazilian YouTuber had to be hospitalized last year due to “stress” After losing access to hardware wallets containing thousands of dollars worth of Bitcoin. Peter Schiff, a gold-loving crypto skeptic from 2020 lost his Bitcoins. “all the Bitcoin I have ever owned” after failing to write down his seed phrase—perhaps explaining his well-documented antipathy towards Bitcoin.
More recently, True Ventures partner Kevin Rose revealed that he lost his home in the California wildfires and the Trezor hardware wallets inside—and has been left temporarily unable to access his crypto keys held in a nearby bank safety deposit box.