Another story similar story is that of Gerald Cotten, who was the CEO of Canadian Crypto exchange QuadrigaCX. When he died suddenly under suspicious circumstances while on his honeymoon in India the access keys to over $250 million worth of cryptocurrency was lost as well, leaving thousands of investors on the platform without a dime. I could tell countless more tales of cases where cryptocurrency was lost to cyberspace forever but you get the point. Cryptocurrency is as fragile as it is volatile.
If you’re reading this article, chances are high you have dabbled in cryptocurrency at some point, you’ve bought Bitcoin on an exchange like Coinbase, or Robinhood, used a banking app that offers crypto investments, or perhaps you have bought crypto some other way and stored it on a long-forgotten hardware wallet stashed away containing what was once worth just a couple hundred bucks of “meme coins” like Dogecoin or Shiba Inu. Those once insignificant holdings could now be worth a small fortune. According to a 2023 report by, about 20% of all Bitcoin—currently valued at over $200 billion—is believed to be lost or stranded in forgotten wallets like the one you got rolling around in your junk drawer.
Crypto Portfolio Secrets
Many of us who hold crypto assets know more or less how much we own and where it's stored. We’ve diligently invested through dollar-cost averaging or just setting aside what we could, slowly building a nest egg for a rainy day or retirement. But while you know exactly how your digital wallets work, have securely stored your cryptocurrencies, and meticulously safeguarded your seed phrases, ask yourself this: Are you the only person who knows how to access your fortune? Let’s face it, we’re all going to die someday and ignoring this fact could lead to your carefully amassed portfolio in Ethereum, Solana, Binance Coin, or Polygon being lost forever.
This could mean that your loved ones, spouse or children will miss out on generational wealth that is substantial enough to buy homes, fund education, start a business, or finance a decades worth of global adventure travel.
Imagine hearing from a family friend that your late husband had often bragged about a cryptocurrency portfolio, only to realize he never told you anything about this and despite looking all over the house and anywhere you can think of couldn’t find a trace of and realize you have no way of accessing it. This isn’t a hypothetical scenario. In recent years, stories like that of Matthew Mellon, who died without a backup plan for the access keys to his $500 million XRP holdings, highlight the real risks of neglecting digital estate planning. Similarly, The New York Times reported on similar stories of individuals who have lost access to vallues in the millions of dollars, because they forgot their passwords or misplaced their cold wallets.
Cryptocurrency’s rise to fame happened so quickly that protocols to prevent loss haven’t kept pace. According to The Guardian, an estimated 3.7 million Bitcoins are lost due to forgotten passwords and misplaced wallets—representing about 18% of all Bitcoin in existence today. In the rapidly evolving world of digital assets, such scenarios are alarmingly commonplace.
This is why we’re highlighting how to properly manage and secure your cryptocurrencies now, to ensure that these investments in your and your families future and maybe even result in generational wealth for your children and grandchildren. By implementing a plan for your digital estate, you can prevent your valuable assets from becoming irretrievable and instead have them serve as a lasting legacy. It’s funny really, how your uncle made fun of you for investing in that silly internet money and now it has set you and your family up for success through an annual compounding nest egg decades later. As long as you don’t lose it all to cyberspace by making the mistake thousands did before you by not making a contingency plan. It's not just about safeguarding wealth; it’s about passing on the opportunities and security that come with it. Don’t let your digital fortune become another statistic—take action to secure it for the next generation.
Can I Include My Cryptocurrency In My Will?
Yes, you can include cryptocurrency in your will. In fact it is a good way of creating clarity on some of the frequently overlooked relatively new digital asset classes. While it’s highly advisable not to include seed phrases, passwords, or other access information in your will or other documents that can be disclosed publicly or shared between lawyers, or even with probate courts. You can make reference to the whereabouts for your estate executor or beneficiaries to follow. I personally have engraved the 20 “recovery phrases” or also referred to as “seed phrases” on a piece of aluminum with a laser engraver and stored it in a safe place with a letter explaining how to access them and what my advice is on how to use them. Clear instructions in your will regarding how your cryptocurrency is stored (such as private keys or wallet details) where the access keys are and designating a beneficiary to inherit it them is key. As cryptocurrencies are decentralized and cannot be retrieved without proper credentials. Let me be crystal clear, there is no customer service for them to call, there is no help desk they can visit… If the instructions are not clear on how to access them, they lock themselves out or lose the access to your account, or wallet. It is lost forever.
What is Digital Estate Planning?
In a nutshell Digital estate planning is making a detailed summary of all the digital assets you own and specifying instructions on who will inherit them and how to access them. I said it before but I will repeat it. DO NOT include account names and passwords, or seed phrases in your will or other documents that will be shared in emails, stored online or in court after you pass. The internet is not a safe place and you do not want anyone to be able to copy the access information to your cryptocurrency. If the wrong person sees them they will make your holding disappear like snow before the sun in an untraceable way. This happens everyday.
But your Digital estate plan does not only consist of cryptocurrency assets, it also encompasses a wide range of items, like online banking and investment accounts, social media profiles, digital photos and videos, domain names, and any other forms of digital property or online presence you own. In today's world social media and content accounts like OnlyFans or the accounts of Youtube creators are increasingly becoming part of estate disputes, much like how celebrities estates have been subject to long legal battles over intellectual property and royalties. So if you get a few hundred thousand views on your video’s it may very well be a good idea to designate a beneficiary because they hold value and generate ARR; annual recurring revenue.
Most People Don’t Create a Will Before they Die.
Yes you read that right, according to a 2023 study conducted by the AARP over 60% of the US population dies intestate which means without having their will in place. This commonly leads to two major issues: first, your loved ones, such as your partner or children, will have to go through a frustrating process to gain ownership of basic assets like your house, car, or bank accounts. And secondly, less obvious assets, such as cold cryptocurrency wallets or online investment accounts, which very well, may be lost forever. Without a Legal State Specific will in place, your country or states default inheritance laws will dictate the distribution of your estate. And may appoint them to someone you don’t wish to include in your list of beneficiaries at all.
The Digital Era We currently live In
In an era where many of us live a big portion of our lives online, I am of the opinion that it's imperative to start including these digital assets in our contingency plan for when the inevitable happens. By taking proactive steps, you can safeguard your digital legacy, and prevent potential financial losses and ensure your loved ones can benefit from ALL the assets you’ve worked so hard to accumulate over your lifetime.
Remember, estate planning is not a one-time task but an ongoing process that evolves with your life circumstances. This is why wills.com comes with free changes to your estate plan for life once you purchase a package
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