A recent U.S. court ruling has determined that the FBI is not liable for deleting a hard drive containing 3,400 Bitcoin (BTC)—worth over $115 million at current prices. The twist? The hard drive’s original owner had denied any ownership during a federal investigation, only to claim it later when the coins had already been wiped.
The court found that the FBI followed legal procedures during the asset seizure and data deletion. Since the individual refused to acknowledge the drive as his property during the investigation, the agency treated it as abandoned. By the time he revealed his ownership, it was too late—those coins were gone.
Mounting Total of Lost BTC
This incident highlights a growing issue within the Bitcoin ecosystem: lost coins. Blockchain analysis firms estimate that as many as 3.7 million BTC—around 18% of the total supply—are now considered permanently inaccessible due to forgotten passwords, destroyed wallets, or situations like this one.
Because of Bitcoin’s decentralized nature and lack of recovery mechanisms, once coins are lost, they’re effectively removed from circulation. This reduces the actual available supply and potentially contributes to long-term price increases, as scarcity grows.
A Harsh Reminder for Crypto Owners
The court’s decision serves as a reminder for crypto holders to secure and clearly document their assets. Whether dealing with law enforcement, estate planning, or simple backups, claiming and protecting your crypto holdings is critical. Once lost, there’s no central authority to restore them—not even the FBI.
As the number of unrecoverable Bitcoin continues to climb, these cases underline the importance of proper custodianship and the risks of anonymity when interacting with the legal system.