In early 2016, I purchased 7.4 Bitcoin for $3,000. At the time, it felt like an interesting experiment—a way to personally engage with the technology I was studying professionally. Little did I know that this decision would lead to a high-stakes technological drama and an invaluable lesson in digital asset security.
My Initial Bitcoin Experience
Using cryptocurrency felt revolutionary. I bought coffee at Starbucks through the airBitz app, purchased a wireless security doorbell from Amazon via Purse.io, and even bought graphic novels from a local comic shop in Los Angeles using Bitcoin. The experience was seamless and intriguing.
By November 2016, the value of my Bitcoin had nearly doubled and was climbing steadily. What began as a casual investment was transforming into a significant financial asset. It was time to take security more seriously.
The Shift to a Hardware Wallet
Many online wallet services hold users' private keys, making them vulnerable to hackers, scammers, or government intervention. Following advice from experts, I decided to move my Bitcoin to a hardware wallet—a dedicated USB-like device that stores private keys offline, authorizing transactions without exposing keys to the internet.
I selected a Trezor hardware wallet (Trezor means "security" in Czech) and purchased one for $100 through Purse.io. When it arrived, I connected it to my computer, visited the official Trezor website, and followed the setup instructions.
The device generated a 24-word recovery seed—critical words like "aware," "move," "fashion," and "bitter." I wrote these words and a PIN code on a bright orange piece of paper. This seed was my ultimate backup; anyone with access to it could control my Bitcoin. I transferred my 7.4 BTC to the Trezor and stored both the device and the orange paper in my home office desk drawer, planning to secure them better after the holidays.
A Costly Mistake
In March 2017, my wife and I were preparing for a trip to Tokyo. While searching for a phone charger, I stumbled upon the orange paper. Concerned about potential flight risks, I decided to leave the note in my 14-year-old daughter’s room, under her pillow, with a note saying: “Jane, if anything happens, give this to Cory. He’ll know what to do. Love, Dad.”
Cory Doctorow, my business partner at Boing Boing, wasn’t a Bitcoin expert, but I trusted him to handle the recovery process if needed.
Upon returning from our trip, I realized the orange paper was missing. My daughter hadn’t seen it. We contacted our house cleaner, who admitted she had thrown it away. After digging through trash and recycling bins, I accepted that the seed phrase was likely buried in a Los Angeles landfill.
The PIN Code Nightmare
Without the seed phrase, my only hope was the PIN code. I was certain I remembered it—or so I thought. I connected the Trezor and entered what I believed was the correct PIN: 551445.
Incorrect PIN.
I tried again, carefully entering the same digits.
Incorrect PIN.
Panic set in. Each failed attempt doubled the waiting time before I could try again. After several wrong guesses, the delay reached 2,048 seconds (about 34 minutes). If I continued guessing incorrectly, I could be locked out for decades—or even longer.
I felt physically ill. My carelessness had put $8,000 at risk (at that time’s valuation), and the situation was worsening by the minute.
Searching for Solutions
Bitcoin’s decentralized nature means there’s no customer support line to call. If you lose access, you’re on your own. I turned to Reddit’s r/TREZOR community, sharing my story and pleading for help.
Most responses were sympathetic but unhelpful. Some suggested professional wallet recovery services, but their estimates were discouraging. One user, “zero404cool,” hinted that he might know a way to extract the seed phrase from the device itself but insisted on operating in private. He seemed skeptical of my intentions and eventually stopped responding.
I even reached out to Trezor’s official support, but their response was clear: without the PIN or seed phrase, no one could help me.
Unconventional Methods
Desperation led me to try hypnotherapy. A certified hypnotist guided me through relaxation and memory-recall techniques, hoping to trigger the correct PIN. Despite four hours of effort, the only number that surfaced—5514455—proved incorrect.
As Bitcoin’s value surged, so did my anxiety. By August 2017, my 7.4 BTC were worth nearly $30,000. Every day felt like a countdown to permanent loss.
My family rallied to help. My eldest daughter, Sarina, suggested a PIN based on patterns I commonly used: 55445 or 554455. With my entire family gathered around, I tried the first option.
Incorrect PIN. Wait 32,768 seconds.
Then the second:
Incorrect PIN. Wait 65,536 seconds.
Hope was fading fast.
A Breakthrough Discovery
Just as I was considering physical hacking or resigning to the loss, I received an email from Trezor announcing a firmware update. The update patched a security vulnerability that allowed attackers with physical access to extract seed phrases from devices running older firmware.
I rushed to the r/TREZOR forum and found a post detailing the exploit—written by none other than zero404cool. He had successfully demonstrated the vulnerability and shared a custom firmware file.
I contacted Andreas M. Antonopoulos, a renowned Bitcoin security expert and author of The Internet of Money. He connected me with Saleem Rashid, a 15-year-old UK-based developer who specialized in Trezor hardware.
Andreas facilitated an agreement: Saleem would develop a step-by-step recovery process using the firmware vulnerability. I would practice on a second Trezor device before attempting the exploit on my original wallet.
The Recovery Process
Saleem sent a custom firmware file and a silent screen-recording video demonstrating the process on Linux. The video showed terminal commands and a physical Trezor device being manipulated step by step.
I installed Ubuntu on an old MacBook Air, familiarized myself with basic Linux commands, and practiced the exploit on the new Trezor. After days of preparation, I felt ready.
With careful precision, I:
- Connected the original Trezor.
- Flashed Saleem’s custom firmware.
- Ran a series of commands in the terminal.
- Watched as the terminal displayed my private keys and PIN.
The entire process took less than 10 minutes.
Lessons Learned
This experience underscored critical lessons in cryptocurrency security:
- Never store your seed phrase and PIN together. Use encrypted password managers for PINs and metal backups for seed phrases.
- Keep firmware updated, but understand the trade-offs between new features and vulnerability exposures.
- Practice your recovery process before large amounts are at stake.
My story had a happy ending, but many others aren’t as fortunate. Proper key management isn’t just a recommendation—it’s a necessity.
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Frequently Asked Questions
What is a Bitcoin seed phrase?
A seed phrase is a series of 12–24 words generated by your cryptocurrency wallet. It serves as a master key to recover your funds if your hardware fails or is lost. Anyone with access to these words can control your assets, so storing them securely is essential.
Can lost Bitcoin be recovered?
In most cases, lost Bitcoin is irrecoverable if you lose both your password and seed phrase. However, in rare instances—like the one I experienced—software vulnerabilities or advanced techniques might offer a solution. These methods are complex and not guaranteed.
How do hardware wallets work?
Hardware wallets are physical devices that store private keys offline. They sign transactions internally, ensuring keys never touch internet-connected devices. This isolation protects against remote hacking attempts, though physical access risks remain.
What’s the best way to store a seed phrase?
Use durable materials like metal plates designed for seed storage. Avoid paper, which can be lost, damaged, or thrown away accidentally. Store multiple copies in secure locations, such as safes or safety deposit boxes.
Are firmware updates safe for hardware wallets?
Yes, reputable manufacturers release updates to patch vulnerabilities and improve functionality. However, as my story shows, delaying updates can sometimes—though rarely—create recovery opportunities. Always weigh the risks and benefits.
Can family members inherit Bitcoin?
Yes, but they’ll need access to your seed phrase or hardware wallet and its PIN. Include instructions in your estate planning, and ensure trustees understand how to access and manage digital assets securely.