Coinbase Head of Product Conor Grogan has shown that at least 913,111 Ethereum worth $ 3.43 billion was permanently lost due to user errors.
Summary
- 913,111 ETH worth $ 3.43b will be lost forever due to user errors and contract bugs
- Parity Multisig Bug In 2017 caused the biggest loss, which locked more than $ 1.9 billion in ETH
- Total ETH destroyed, including EIP-1559 burns, exceeds 5% of all created ETH
The analysis shows that 0.76% of the total supply of ETH has been destroyed due to various technical errors and protocol vulnerabilities.
When the recording of EIP-1559 Ethereum (ETH) burned a total of 5.3 million tokens, more than 5% of all Ethereum ever created, permanently removed from the circulation, which represents a destroyed value.
Parity Multisig Bug leads the biggest loss of one ethereum
The vulnerability of Multisig Library 2017, which permanently locked 513,746.47 ETH worth $ 1.93 billion in 178 portfolios, is the source of the most important individual loss.
An anonymous user used a vulnerability in the shared library component and then destroyed it. This blocked access to funds in 587 dependent portfolios.
The Web3 Foundation is good for 306,000 ETH that is detained in this incident, while other organizations and individuals lost extra money by the same exploit.
Other major losses include 250,000 ETH worth $ 939.7 million lost by Rain Lohmus because of misplaced private keys, and 85,476.17 ETH rated at $ 321.3 million locked up in Buggy contracts, including splitter and akuharuction implementations.
Grogan’s research identified 36,419.23 ETH, worth around $ 136.9 million, sent to addresses by typos or “fat -finger” transactions in 2,639 portfolios.
These losses occur when users wrongly introduce the addresses of the recipient, resulting in funds sent to uncontrolled or non-existent addresses.
An additional 26,814.16 ETH with a value of $ 100.8 million has been sent to burn addresses (0x0 and 0xDead), where users apparently deliberately destroy tokens for unknown reasons.
The investigation also found 654.29 ETH, worth around $ 2.5 million, caught in wrapped ETH contracts due to technical issues.
Actual losses are probably larger than documented amounts
Grogan emphasized that the $ 3.4 billion figure “significantly endorses the actual lost/inaccessible ETH, however,” because it only includes cases in which Ethereum is permanently locked.
The analysis closes lost private keys, forgotten Genesis portfolios and other forms of inaccessibility that cannot be measured definitively.
The documented losses offer a conservative basic line for Ethereum permanently removed from circulation due to technical malfunctions instead of deliberate burning mechanisms.
Lost private keys from Early Adopters and exchange errors probably contribute extra billions to inaccessible ETH.
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