Losing access to a Bitcoin wallet is never fun. Unfortunately, it is something a lot of people have experienced in recent years. In some cases, people lose the private key to their wallet due to replacing a computer hard drive. One Reddit user has some beef with GreenAddress, though, as the company ignored his request for help. After losing 2FA access to the wallet, his funds have been locked for some time now. To make matters worse, his access to the wallet has been removed altogether.
Using centralized wallet services is always a big risk. This is especially true in the world of Bitcoin and cryptocurrency. Any centralized wallet service can disappear or revoke your access on a whim’s notice. GreenAddress is one of those centralized services which has become somewhat popular in recent years. Sadly, the company is getting a lot of negative attention right now. One user lost access to his funds and things escalated quickly from there on out.
GreenAddress User Loses US$15,000 worth of Bitcoin
This issue has been going on for several months already. The user has funds trapped in a GreenAddress wallet due to losing the 2FA code. According to the company faq, they can’t re-enable 2FA access under any circumstances. This means around US$15,000 worth of BTC is stuck in a wallet controlled by a third party. Using a centralized service means you often do not control the private key whatsoever. GreenAddress is no different in this regard.
This user got so fed up he took the issue to his lawyer. GreenAddress is based in Malta, and the lawyer filed for legal action. So far, this request has fallen on deaf ears, which is anything but surprising. The company has done nothing wrong, and the user is at fault for losing his 2FA code in the first place. The fact the company isn’t helping is to be expected, as their FAQ clearly states it. Not showing any effort to do something could hurt the company in the end, though.
Losing your 2FA code is rather unusual. Deleting 2FA applications is just asking for trouble, though. Getting involved in cryptocurrency requires doing some homework. In some cases, that leads to learning expensive lessons, to say the least. Additionally, people need to learn not to rely on centralized services. Get a proper Bitcoin or other cryptocurrency wallet, which lets you access and export the private key. Otherwise, you are never in full control of your funds.