Investor loses wallet password with R$2 billion worth of cryptocurrencies

Rain Lõhmus, founder of LHV Bank, Estonia’s largest bank, is faced with a situation that illustrates one of the biggest problems in the cryptocurrency market. Despite owning an Ethereum wallet that houses a huge fortune 250,000 ethersrated at almost half a billion dollarsLõhmus lost access to his digital treasure, according to an interview with Vikerraadio, the Estonian national broadcaster.

The revelation came to light when Lõhmus was asked about previous comments about his involvement in Bitcoin. The banker said he invested early in the cryptocurrency market and amassed significant wealth. However, he now faces the challenge that he has lost the password to access this digital wealth.

“No, and I didn’t put much effort in either,” said Lõhmus when asked about a possible recovery of lost passwords. “It’s no secret that I have a wallet with 250,000 units of Ethereum, everyone can calculate for themselves how much it is worth.”

Faced with the interviewer’s disbelief about its expressive value, Lõhmus remained calm and opened up space for creative solutions, such as the unusual proposal to create an artificial intelligence with his own memories to try to regain access to quantity.

“I can’t solve this alone; If anyone thinks it’s possible, I’ll accept all offers. My best plan is to build an AI of myself and see if my AI can restore my memories.”

Rain Lõhmus Source: Siim Lõvi /ERRRain Lõhmus Source: Siim Lõvi /ERR
Rain Lõhmus Source: Siim Lõvi /ERR

“Weak system”

Lõhmus’ story highlights one of the most critical and often discussed points in the crypto ecosystem: the security of private keys and seed phrases. The risk of losing access is as real as the potential for astronomical profits, something the Estonian banker knows well.

“I completely agree that this is a very weak point of this system,” reflected Lõhmus.But it happens very often that I lose passwords.”

Their fate reminds us that while decentralization brings freedom and autonomy, it also comes with significant responsibilities.

In Lõhmus’ case, renewing his ID card password is a bureaucratic process, but losing the key to a cryptocurrency wallet means facing a “major crisis” without the safety net that centralized institutions provide.

Analyzing the information provided by Lõhmus, experts from the crypto community identified his Ethereum address.

Etherscan, a blockchain exploration platform, reveals that Lõhmus’ wallet (0x2B6eD29A95753C3Ad948348e3e7b1A251080Ffb9) is the fourth largest holder of ethers, aside from exchanges, the Ethereum Foundation, and the Wrapped Ether (wETH) address.

Rain Lõhmus Ethereum WalletRain Lõhmus Ethereum Wallet
Rain Lõhmus Ethereum Wallet

Lõhmus’ situation is not unique in the market, but its prominence underlines the need for more robust digital asset management and recovery solutions.

Until a resolution is reached, Lõhmus’ case remains a cautionary tale for digital investors, reinforcing the importance of security and careful management of wallet passwords.

Source: Live Coins