By Mark Hunter
6 months agoTue Jul 22 2025 08:49:11
Reading Time: 2 minutes
A blockchain analyst has revealed that over 913,000 ETH has been permanently lost due to user mistakes
The figure represents more than 0.76% of Ethereum’s total supply, highlighting critical flaws in wallet usability and recovery
The findings have reignited calls for better tools and safeguards in crypto infrastructure to protect users from irreversible errors
Nearly a million Ethereum tokens have been identified as lost forever, according to new research by on-chain analyst Conor Grogan. In a widely shared tweet thread, Grogan revealed that at least 913,111 ETH is “lost forever due to user error,” representing a striking 0.76% of the current ETH supply, with the lost funds today valued at more than $3.4 billion. The scale of the loss has drawn attention to persistent problems around crypto wallet design and the high stakes of managing digital assets without recovery mechanisms.
Human Error Remains Biggest Risk
Grogan’s breakdown includes ETH stuck in dead smart contracts, wallets with no known keyholders, and funds accidentally sent to burn addresses or incorrect destinations. Among the examples he cited was the QuadrigaCX scandal , where approximately 60,000 ETH became inaccessible after the founder died without sharing wallet credentials:
Based on my research, a minimum of 913,111 Ethereum is lost forever due to user error. This is 0.76%+ of ETH supply, or $3.43 billion in lost funds
If we include EIP‑1559 burned ETH (5.3M), then >5% of all ETH ever made ($23.42B) have been permanently destroyed pic.twitter.com/IlTduN7Kzx
— Conor (@jconorgrogan) July 20, 2025
Grogan noted that there are “hundreds of examples of people sending ETH to contracts with no withdraw function,” highlighting that the problem is systemic, rather than isolated. As Ethereum continues to gain adoption, these incidents serve as stark reminders that human error remains one of the biggest risks in the ecosystem.
Developers Hoping to Bridge the Gap
The discussion has sparked renewed interest in improving wallet usability and developing better safety nets, with developers exploring features such as social recovery, clearer backup instructions, and account abstraction to make crypto more user-friendly. While some advocate for blockchain-level changes to address inaccessible funds, others argue that any such intervention would undermine Ethereum’s core principles of immutability and decentralization.
Either way, Grogan’s research has brought fresh urgency to a longstanding issue: when users lose access to their wallets, the consequences are often final, and incredibly costly.
