Lost keys, lost fortunes: the inheritance crisis of digital assets

Written by Reid A. Winthrop, Managing Partner, Winthrop Law Group, PC

Digital assets have moved from the fringes of speculation into the mainstream of finance. According to CoinDesk, stablecoins alone now account for more than $288 billion in circulation, with nearly 99% pegged to the US dollar. Tokenised bonds, real estate and even art are being traded daily across distributed ledgers and these real world assets that have been tokenised are projected to be worth $24 billion by the end of 2025 and up to $30 trillion by 2034. Yet beneath the promise of borderless liquidity and programmable money lies a vulnerability often overlooked until it is too late. What happens to digital wealth when its owner dies?

5% of Ethereum tokens and 20% of Bitcoins potentially lost forever

Source: X/Coinbureau

The central problem is one of irretrievability. In traditional finance, executors can locate bank accounts, contact custodians and obtain court orders to access frozen funds. On the blockchain, there is no such recourse - lose the private keys, and the assets are gone f…