• A Bitcoin holder recovered nearly $400,000 in BTC after using Claude AI to unlock a wallet that had been inaccessible since 2015.
• The recovery relied on AI-assisted assessment of old wallet files and mnemonic data to decide the password.
• Blockchain activity confirmed the movement of the recovered BTC, sparking widespread discussion about AI's growing role in crypto recovery.

A Bitcoin (BTC) holder allegedly regained access to roughly 5 BTC, worth nearly $400,000, after misplacing his password, according to a viral X post on Wednesday.

The individual, identified on X as cprkrn, said he successfully recovered the funds with assistance from Claude AI after years of failed recovery attempts.

Crypto community reacts to AI-powered Bitcoin wallet recovery

According to the user, the Bitcoin address became inaccessible after he changed the wallet password and forgot the credentials. Over the years, he reportedly attempted countless password combinations, hired multiple recovery services, and searched through old notes in an effort to regain access to the funds.

The breakthrough came after the user uploaded files from an old college computer into Claude AI. Using a recovered mnemonic phrase, the user was then able to decrypt the wallet and regain access to the tokens.

"Tried ~3.5 trillion passwords + none worked, ended up matching an old seed phrase found in a college notebook with an old wallet file," he wrote.

The user also publicly revealed the forgotten password, prompting widespread reactions across the crypto community. In a follow-up post, he admitted he "would've been too dumb to figure it out" without the AI's assistance.

Blockchain data appears to support the claim. Wallet records tied to the address show Bitcoin deposits dating back to April 2015, along with recent transaction activity consistent with a recovery and transfer of funds to a new wallet address, according to data from Blockchair.

The story quickly drew attention from prominent figures across the crypto industry, including Nic Carter, Laura Shin and Jesse Pollak.

The recovery relied on AI-assisted analysis of files and credentials already owned by the wallet holder, easing concerns about broader risks to Bitcoin wallet security.

The development highlights a growing use case for artificial intelligence tools in crypto recovery. However, it does not imply AI's ability to break crypto's complex code, as his case was simply a wallet recovery using a seed phrase and other files.

The recovery stands in contrast to many high-profile stories involving inaccessible Bitcoin holdings, including the 2025 case of James Howell, who tried to recover a hard drive containing thousands of BTC in a landfill.