AI helped crack a $400K Bitcoin wallet locked for 11 years.
In 2015, a guy got high, changed his Bitcoin wallet password, and forgot it almost instantly. Over the next 11 years, he tried 3.5 trillion combinations and even paid $500 for professional recovery. Nothing worked. Last week, he dumped the contents of his old college laptop into Claude. The AI dug through years of old files, found a backup wallet from before the password change, and then spotted a bug in the recovery software that had been scrambling the password in the wrong order the whole time. Once the bug was fixed, he got in and moved the funds. 5 $BTC that had been locked since 2015 were transferred to a new wallet. Chainalysis estimates that 3-4 million BTC, roughly $300 billion, may be permanently lost because of forgotten passwords and dead hardware. If AI starts recovering even a fraction of that, it becomes new supply entering the market - and almost nobody is pricing that in.
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