October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsSlow PC?RecommendedPC slow today? Run a repair scan before it gets worseResolve common Windows issues and optimize system performance.Scan NowOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

Stefan Thomas’s 7,002 Bitcoin: What’s Known About the Locked IronKey

Thomas’s reported 7,002 bitcoin were tied to private keys on a password-protected IronKey. Reports established eight failed attempts in 2021, but not his current status or a recovery of his device.
From TheFinanceBase Team3 min to read

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Stefan Thomas’s reported 7,002 bitcoin are controlled by private keys on a password-protected IronKey USB device—not physically stored on the drive. In January 2021, reports said he had used eight of the device’s ten password attempts. A 2023 report described a successful test on a comparable IronKey, but did not establish that Thomas’s own device was unlocked or that his bitcoin were recovered. His current attempt count and the outcome remain unverified.

How many bitcoin does Stefan Thomas have?

Thomas’s wallet was reported to contain 7,002 BTC. The figure appeared in January 2021 coverage by The New York Times and The Guardian, and WIRED reiterated it in October 2023. It is a reported wallet balance, not a verified current balance or a fixed dollar amount.

The headline figure of $800 million is not substantiated as a current valuation here. Bitcoin’s price moves, so any dollar conversion needs a date and a price source. Without those, the useful, supportable figure is 7,002 BTC.

What is locked on the USB drive?

The IronKey did not hold bitcoin as files. It held private keys—the cryptographic credentials that control access to a bitcoin wallet. If the keys cannot be accessed, the wallet’s bitcoin cannot be spent, even though the blockchain continues to record the balance.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
#1 Best Overall
Yubico - Security Key C NFC - Basic Compatibility - Multi-Factor authentication (MFA) Security Key and passkey, Connect via USB-C or NFC, FIDO Certified
  • POWERFUL SECURITY KEY: The Security Key C NFC is the essential physical passkey for protecting your digital life from phishing attacks. It ensures only you can access your accounts.
  • WORKS WITH 1000+ ACCOUNTS: Compatible with Google, Microsoft, and Apple. A single Security Key C NFC secures 100 of your favorite accounts, including email, password managers, and more.
  • FAST & CONVENIENT LOGIN: Plug in your Security Key C NFC via USB-C and tap it, or tap it against your phone (NFC) to authenticate. No batteries, no internet connection, and no extra fees required.
  • TRUSTED PASSKEY TECHNOLOGY: Uses the latest passkey standards (FIDO2/WebAuthn & FIDO U2F) but does not support One-Time Passwords. For complex needs, check out the YubiKey 5 Series.
  • BUILT TO LAST: Made from tough, waterproof, and crush-resistant materials. Manufactured in Sweden and programmed in the USA with the highest security standards.

WIRED’s 2023 account says Thomas received the bitcoin for making a Bitcoin explainer video in 2011. Two backup wallet copies were erased, and he later lost the paper note containing the password to the remaining copy stored on the IronKey. Without the password or a successful recovery method, he could not use that copy’s keys.

Does Stefan Thomas still have two password attempts left?

That was the reported position in January 2021: he had made eight unsuccessful guesses against the device’s ten-attempt limit. WIRED repeated that historical count in October 2023. Neither report establishes how many attempts remain today, whether the device’s state has changed, or whether access has since been recovered.

Rank #2
Yubico - YubiKey 5C NFC - Multi-Factor authentication (MFA) Security Key and passkey, Connect via USB-C or NFC, FIDO Certified - Protect Your Online Accounts
  • POWERFUL SECURITY KEY: The YubiKey 5C NFC is the most versatile physical passkey, protecting your digital life from phishing attacks. It ensures only you can access your accounts
  • WORKS WITH 1000+ ACCOUNTS: Compatible with popular accounts like Google, Microsoft, and Apple. A single YubiKey 5C NFC secures 100+ of your favorite accounts, including email, password managers, and more
  • FAST & CONVENIENT LOGIN: Plug in your YubiKey 5C NFC via USB and tap it, or tap it against your phone (NFC), to authenticate. No batteries, no internet connection, and no extra fees required
  • MOST SECURE PASSKEY: Supports FIDO2/WebAuthn, FIDO U2F, Yubico OTP, OATH-TOTP/HOTP, Smart card (PIV), and OpenPGP. That means it’s versatile, working almost anywhere you need it
  • PRIMARY & SPARE KEYS: Just like having a spare house key, we recommend buying two YubiKeys - one for daily use and one as a spare. That way you’ll never get locked out of your accounts

With only two attempts reported at the time, guessing was a high-risk strategy: another incorrect password could trigger the device’s lockout behavior. The old count should not be treated as a present-day status report.

Can the IronKey be unlocked?

WIRED reported in October 2023 that digital-forensics company Unciphered demonstrated a method against a comparable, decade-old IronKey S200. The publication said the team reverse-engineered examples, found a way to defeat the password-attempt counter, and demonstrated recovery on three drives for its reporters. The detailed technique was not made public.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Rank #3
Yubico - YubiKey 5 NFC - Multi-Factor authentication (MFA) Security Key and passkey, Connect via USB-A or NFC, FIDO Certified - Protect Your Online Accounts
  • POWERFUL SECURITY KEY: The YubiKey 5 NFC is the most versatile physical passkey, protecting your digital life from phishing attacks. It ensures only you can access your accounts
  • WORKS WITH 1000+ ACCOUNTS: Compatible with popular accounts like Google, Microsoft, and Apple. A single YubiKey 5 NFC secures 100+ of your favorite accounts, including email, password managers, and more
  • FAST & CONVENIENT LOGIN: Plug in your YubiKey 5 NFC via USB and tap it, or tap it against your phone (NFC), to authenticate. No batteries, no internet connection, and no extra fees required
  • MOST SECURE PASSKEY: Supports FIDO2/WebAuthn, FIDO U2F, Yubico OTP, OATH-TOTP/HOTP, Smart card (PIV), and OpenPGP. That means it’s versatile, working almost anywhere you need it
  • PRIMARY & SPARE KEYS: Just like having a spare house key, we recommend buying two YubiKeys - one for daily use and one as a spare. That way you’ll never get locked out of your accounts

That demonstration is not evidence that Thomas’s particular drive was unlocked. Thomas told WIRED he had already been working with other experts and was no longer free to negotiate with a new team. The article did not report a recovery of his device. Unciphered also said it had unlocked similar drives more than a thousand times; that is the company’s claim as reported by WIRED, not independent confirmation of Thomas’s outcome.

A 2021 technical preprint by Sergei Skorobogatov examines multiple IronKey generations and possible attacks, but it does not establish an ordinary recovery method for Thomas’s specific S200. The difference matters: technical vulnerabilities or success on comparable hardware do not prove that a particular locked device can be recovered.

Rank #4
Yubico - Security Key NFC - Basic Compatibility - Multi-Factor Authentication (MFA) Key, Connect via USB-A or NFC, FIDO Certified
  • POWERFUL SECURITY KEY: The Security Key NFC is the essential physical passkey for protecting your digital life from phishing attacks. It ensures only you can access your accounts.
  • WORKS WITH 1000+ ACCOUNTS: Compatible with Google, Microsoft, and Apple. A single Security Key NFC secures 100 of your favorite accounts, including email, password managers, and more.
  • FAST & CONVENIENT LOGIN: Plug in your Security Key NFC via USB-A and tap it, or tap it against your phone (NFC) to authenticate. No batteries, no internet connection, and no extra fees required.
  • TRUSTED PASSKEY TECHNOLOGY: Uses the latest passkey standards (FIDO2/WebAuthn & FIDO U2F) but does not support One-Time Passwords. For complex needs, check out the YubiKey 5 Series.
  • BUILT TO LAST: Made from tough, waterproof, and crush-resistant materials. Manufactured in Sweden and programmed in the USA with the highest security standards.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

What does this case show about self-custody?

Self-custody gives a wallet owner control of the keys, but it also makes the owner responsible for keeping usable, secure backups. Thomas’s story illustrates how several failure points can compound: backup copies were erased, the remaining password record was lost, and the device limited failed guesses.

  • Back up recovery material independently. A backup stored with the original device can be lost in the same incident.
  • Protect both the keys and the way to unlock them. A surviving encrypted wallet is not useful if its password is unavailable.
  • Understand the device’s retry and lockout rules before relying on it. A limited-guess device makes experimentation especially risky.
  • Distinguish a recovery demonstration from recovery of your own device. A successful test on a similar model does not guarantee the same result for a particular unit.

Thomas captured the trade-off in comments to The Guardian: “This whole idea of being your own bank – let me put it this way, do you make your own shoes?” He added, “The reason we have banks is that we don’t want to deal with all those things that banks do.”

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Best Value
Yubico - YubiKey 5C - Multi-Factor authentication (MFA) Security Key and passkey, Connect via USB, FIDO Certified - Protect Your Online Accounts (5C)
  • POWERFUL SECURITY KEY: The YubiKey 5 is a versatile physical passkey that protects your digital life from phishing attacks. It ensures only you can access your accounts.
  • WORKS WITH 1000+ ACCOUNTS: Compatible with popular accounts like Google, Microsoft, and Apple. A single YubiKey 5 secures 100+ of your favorite accounts, including email, password managers, and more.
  • FAST & CONVENIENT LOGIN: Plug in your YubiKey 5 via USB and tap it to authenticate. No batteries, no internet connection, and no extra fees required.
  • MOST SECURE PASSKEY: Supports FIDO2/WebAuthn, FIDO U2F, Yubico OTP, OATH-TOTP/HOTP, Smart card (PIV), and OpenPGP. That means it’s versatile, working almost anywhere you need it.
  • BUILT TO LAST: Made from tough, waterproof, and crush-resistant materials. Manufactured in Sweden and programmed in the USA with the highest security standards.

Frequently Asked Questions

Did Unciphered recover Stefan Thomas’s bitcoin?

No recovery of Thomas’s specific device was reported in WIRED’s October 2023 account. Unciphered demonstrated a method on comparable IronKey S200 drives, and Thomas said he was already working with other experts.

Is the bitcoin physically stored on the IronKey?

No. The drive held wallet private keys that control access to bitcoin recorded on the blockchain.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase09 OCT 267 minMortgage Escrow FAQs: Taxes, Insurance, Shortages, and Refunds
  2. The Money DeskBlogTheFinanceBase09 OCT 265 minHow Mortgage Escrow Accounts Work and What Homeowners Pay For
  3. The Money DeskBlogTheFinanceBase09 OCT 265 minHow to Read a Stock Chart, Volume and Market-Cap Data
Recommended PC Tool
Recommended PC Tool
Crashes, No Sound, or Screen Glitches?Free driver scan
PC Slower Than It Used to Be?Free scan - under a minute

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.