Man lost $26,000,000,000 in Bitcoin after exchange erased his trade for bizarre reason
More than $26 billion worth of Bitcoin was lost in today’s value after one man’s quick thinking went wrong
Over a decade ago, a man lost the equivalent of $26 billion in Bitcoin after the market crashed.
There are some nightmare tales of people having lost or traded their Bitcoin only to discover years down the line they’ve lost out on a fortune they could only dream of.
We all know Laszlo Hanyecz’s story, the Florida man who bought two pizzas using 10,000 Bitcoins back in 2010 – the equivalent of $1,037,902,000 – making each of them worth $512,412,500 today.
Speaking to 60 Minutes correspondent Anderson Cooper during his first TV interview, Hanyecz revealed his reasoning for doing so.
He said: “I honestly thought it would be really cool if I could say, ‘Hey, I just traded this, you know, open source internet money for a real world good’.”
A year later, a Nebraska man named Kevin Day purchased 259,684 Bitcoins for $2,613 – which, according to Google, is worth $26,952,654,296 in today’s valuation… yes, that’s almost $27 billion.
Kevin Day purchased more than 259,000 Bitcoins back in 2011 (Binance)
According to Forbes’ Rich List for 2024, that amount would have made Day the 69th richest person on the planet right now.
The market crash
On June 19, 2011, something weird was going on with the cryptocurrency market – more specifically, Bitcoin.
At the start of the day one Bitcoin was trading for $17.50 but in less than 20 minutes the market had crashed to just one cent per Bitcoin.
While people were in shock at what had happened, Day leapt on the opportunity to purchase as many Bitcoins as he possibly could – he had $3,000 in his crypto wallet from previous trades.
Kevin Day’s Bitcoin transaction
Aware that people would bid the standard one cent for the Bitcoin he decided to bid for the lot at $0.0101 per Bitcoin so that the system would favor his transaction when accepting people’s offers.
Day managed to withdraw 643 Bitcoins (Getty Stock Image)
He came away with 259,684 Bitcoins but he quickly realized that the reason for the crash was due to someone hacking the Mt. Gox – the exchange server for Bitcoin.
The culprit had hacked into people’s Bitcoin accounts and sold off all their coins.
Day tried to withdraw all the Bitcoins he had in his account but was unable to – instead, he managed to withdraw 643 Bitcoins, which today is the equivalent of $66 million.
The outcome
To rectify the hack, Mt. Gox decided to roll back all the trades made during the crash.
It meant the exchange erased his trade for the bizarre reason that the server was hacked – but they didn’t come after him for the 643 Bitcoins.
It meant that Day lost out on 259,041 Bitcoins at a value in today’s market of more than $26 billion.
Featured Image Credit: Binance/Getty Images/NurPhoto
Topics: Bitcoin, Cryptocurrency, Money, Technology
Man made most expensive pizza order in history after using $1,000,000,000 worth of Bitcoin to pay for two pizzas
It took four days before someone took up Laszlo Hanyecz’s offer of trading 10,000 bitcoins for any two large pizza
I don’t think I could ever live with myself if I spent the equivalent of more than $1 billion on pizza – but that’s exactly what one man did more than a decade ago.
Laszlo Hanyecz is the Florida man who bought two pizzas using 10,000 bitcoins – but his reason for doing so is actually pretty epic, although I’m sure he won’t see it that way anymore.
On May 18, 2010, Hanyecz made history as he took to a Bitcoin Forum to write: “I’ll pay 10,000 bitcoins for a couple of pizzas … like maybe 2 large ones so I have some left over for the next day.
“I like having left over pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for bitcoins where I don’t have to order or prepare it myself, kind of like ordering a ‘breakfast platter’ at a hotel or something, they just bring you something to eat and you’re happy!”
“I like things like onions, peppers, sausages, mushrooms, tomatoes, pepperoni, etc… just standard stuff no weird fish topping or anything like that. I also like regular cheese pizzas which may be cheaper to prepare or otherwise acquire.
“If you’re interested please let me know and we can work out a deal. Thanks, Laszio.”
Laszlo Hanyecz offered 10,000 bitcoins for two pizzas back in 2010 (Getty Stock Image)
You’ve got to give it to him, he knew what he wanted.
It took four days for someone to take him up on the deal – a British man who ordered Hanyecz two Papa John’s pizzas for $25 – and even then, it was a bargain as 10,000 bitcoins held the value of $41.
Just nine months later, the currency matched that of the US dollar – meaning that those 10,000 bitcoins cost $10,000.
Following the successful transaction, Hanyecz took to the platform to write: “I just want to report that I successfully traded 10,000 bitcoins for pizza.”
He included a picture of him and his two sons with the two large pizzas, adding ‘thanks jercos’.
10,000 bitcoins is worth a hell of a lot in today’s currency (60 Minutes/CBS)
But what was the epic reason for doing so then?
Speaking to 60 Minutes correspondent Anderson Cooper during his first TV interview, he said: “I honestly thought it would be really cool if I could say, ‘Hey, I just traded this, you know, open source internet money for a real world good.”
It was one of the first ever transactions for a physical object using bitcoin.
The current value of 10,000 bitcoins is $1,024,825,000 – making each of those pizzas worth $512,412,500 today.
0 comments
Featured Image Credit: 60 Minutes/CBS
Topics: Bitcoin, History, Money, Technology, Business
Man who threw away $632,000,000 Bitcoin says he has ‘finely tuned’ plan to recover it after a decade
The battle between Bitcoin man and the council rages on
Poppy Bilderbeck
A man who lost a hard drive with $632 million Bitcoin on it has hit back at the council, claiming he’s managed to identify a ‘small area’ where it could lie in a landfill site.
James Howells’ battle against Newport City Council in Wales to get his hands back on a hard drive – reported as holding an eye-watering $632 million Bitcoin – continues.
The IT engineer says 8,000 Bitcoins were stored on a hard drive which a former partner accidentally threw out in 2013.
After realizing the mistake, Howells rushed to contact the council and explain the situation, alas, the council refused to let him go to the landfill site in search of the drive.
Howells resolved to sue the council for $648 million and went about coming up with a plan to find where the hard drive lay in the site, a battle having continued for over 10 years.
A spokesperson for Newport Council said the council told Howells ‘multiple times’ an excavation is ‘not possible under our environmental permit and that work of that nature would have a huge negative environmental impact on the surrounding area’.
It added it’s the ‘only body authorised to carry out operations on the site’ and ‘follows a strict monitoring and reporting regime for all environmental parameters’.
However, Howells has since argued he’s been able to ‘pinpoint’ a pretty accurate location of where the hard drive should be.
James Howells’ team argues it’s not a ‘needle-in-the-haystack’ situation (Getty Stock Image)
At a hearing – to decide whether the case should go to a full trial – in Cardiff civil and family court, Howells’ legal team argued all it would take to get the hard drive back is actually a ‘precise excavation’ of a ‘small area’ of the landfill site and that the area has been positively identified.
They added: “This is a finely tuned plan by expert excavators.”
Howells also reportedly hired NASA data recovery engineers alongside using AI in his bid to locate the device.
Prior to the hearing, a spokesperson for Newport Council said: “Responding to Mr Howells’ baseless claims are costing the council and Newport taxpayers time and money which could be better spent on delivering services.”
However, Howells has resolved: “I could spend the rest of my life working nine-to-five and thinking about it every day. I might as well spend my time trying to recover this simple piece of metal.”
UNILAD has contacted Newport City Council for comment.
Featured Image Credit: BBC/Getty Images/Chesnot
Topics: Bitcoin, Money, UK News, Cryptocurrency, Technology, Wales, Environment
Man tracking Bitcoin prices posts eerily similar video of it reaching ‘highest price’ 11 years apart
It just goes to show that good things come to those who wait
A guy has been dubbed a ‘legend’ for recreating a viral video from 11 years ago.
Back in 2013, Isaac Miller took to YouTube to celebrate Bitcoin hitting a new high of $100 at market summary, four years on from the cryptocurrency being launched.
There’s limited data about Bitcoin about its first year, but it’s said that by 2010, it was worth $0.40 per coin.
Fast forward to June 2011, and it hit almost $30, BankRate reports, which seemed somewhat impossible.
It quickly crashed though and finished the year at $4.20.
It was in April 2013 that it hit new highs and surpassed $100 – a moment Isaac documented in a video.
“I’m right here, watching history be made,” he said in the 11-year-old clip.
“Bitcoin is now up to $111. It’s an all time high and it’s continuing to rise.
“I’ve seen it break three times today and it went up to $110, and this is the highest that its been. It’s ridiculous.”
And Isaac, an original Bitcoin investor, was right when he said it was continuing to rise as just a few days later it peaked at $230.
But these figures are now pocket change for those who have held onto their Bitcoin cryptocurrency over the years as it recently hit a whopping $100,000.
To mark the momentous occasion, Isaac reenacted his viral video almost word-for-word, but said $100,000 instead of $110.
The original clip has garnered more than 5.5 million views in the three years since it was posted to YouTube.