QE’s Solution for Locked Crypto Wallets and Lost Private Keys
Since the heyday of ICOs in the 2017–2018 cycle, we’ve had a massive uptick in the number of folks entering the crypto arena, as well as the inherent complexities that these new users have had to contend with.
At a base level, custody of your crypto, and now NFTs, requires some basic knowledge of how a web (software) or device (hardware) wallet works. This also includes either storing your private keys on paper, in a secure location — or maintaining encrypted digital records of private keys, for each wallet.
And with the rise of new popular cryptocurrencies — many of which aren’t built off of the Ethereum (ERC-20) standard — users often have to manage a number of different wallets to participate in the plethora of token offerings and NFT projects available across the web.
With the challenges that COVID added to the mix over the past two years, that can often mean that private keys are lost in a move, or on a sadder note — that web and hardware wallets may have passed hands due to the passing of the original owner. Subsequently, Institutions are also facing identical problems after acquisitions, retirements and employee transitions — wallets with much larger HODLings.
This results in three categories of wallets that end up locked from their users:
- Wallets owned by average crypto users with assets between $500 — $10,000
- Probate or Estate controlled HODLer wallets typically holding $10,000 — $1M
- Institutional and Estate Wallets that could be holding $1M or more
Over the course of the past year, QE has been working with a small number of partners to develop remediation options that general readers and institutional readers alike could benefit from.
The Research and the Solution
QE’s initial response started after one of our own principals was locked out of a hard wallet during a battle with cancer. While he was stuck in the hospital with fees spiraling, beyond healthcare coverage — he couldn’t find his private keys after his family moved his apartment.
QE research initially discovered that Trezor wallets could be opened by a third-party method.
While that was enough to recover assets to defray medical costs — it opened a larger question on what can folks and institutions do when the same thing happens to other wallets?
So over the past year, we went through a number of pilots and finally decided to partner with Unciphered, as their expertise isn’t just Trezor — but is extended across hundreds of web wallets, iPhone and Android app wallets, as well as Ledger (Now at 5M wallets globally) and several additional hard wallets.
Why? Because of their expertise in both exploits and de-encrypting wallets, with legally documented user authorization. The authorization is typically facilitated through an attorney.
The following link, while deeply technical, shows the prowess of their capabilities and where they deliver — while other partners in the space often end up only posting YouTubes of what isn’t possible.
Also, they were able to facilitate the recovery of 22 BTC for a client …
The New Opportunity for HODLers and Folks who have lost their keys
With the capability to now legally recover owned, locked-out wallets for users and Institutions — we see a bigger opportunity for the market as we slowly emerge from this recent crypto winter.
What we also like is that Unciphered will also scope your wallet case for free, regardless of wallet size, before presenting you with the fee structure for recovering your crypto.
Also, if you’re interested, we’ve worked out a discount for QE readers where if you explore your options with Unciphered, their success fees will be reduced by 10%. What we also like is that they don’t charge you unless they do succeed — and so far they’ve been unstoppable.
QE 10% Discount Link for Wallet Recovery below (good for 90 days from this post) ☺️
This content is for educational purposes only. It does not constitute trading advice. Past performance does not indicate future results. Do not invest more than you can afford to lose. The author of this article may hold assets mentioned in the piece.
If you found this content engaging, and have an interest in commissioning content of your own, check out Quantum Economics’ Analysis on Demand service.
