Life After losses: Stories of People Who Lost and Rebuilt in Crypto

February 24, 2025

By Anjali Kochhar

The world of cryptocurrency is full of both massive opportunities and devastating losses. Many investors have seen their fortunes wiped out overnight due to scams, hacks, or market crashes. But for some, these setbacks weren’t the end of their journey, they were just the beginning of a remarkable comeback. Instead of giving up, they learned from their mistakes, adapted to the market, and rebuilt their financial lives. Here are the inspiring stories of those who turned crypto losses into success. 

Michael Novogratz

Michael Novogratz, a former hedge fund manager, lost heavily in the 2008 financial crisis and later in crypto trading, with Galaxy Digital losing $136 million in 2018. Undeterred, he doubled down on crypto, investing in projects like BitGo and growing Galaxy Digital into a major player. By 2025, his net worth rebounded to $6.42 billion. His journey from loss to billionaire status showcases resilience, strategic investments, and belief in blockchain’s future, making him a key figure in the crypto industry.

Masayoshi Son

Masayoshi Son, the founder of SoftBank, ventured into Bitcoin investments during its peak in 2017. Facing a substantial loss of approximately $130 million due to the cryptocurrency’s volatility, Son didn’t retreat from the tech investment landscape. Instead, he continued to back innovative startups and technologies, demonstrating that even seasoned investors encounter setbacks. 

James Altucher

James Altucher, an entrepreneur and author, experienced significant financial losses early in his career, losing a substantial portion of his wealth through ill-fated investments. However, he leveraged these experiences to rebuild his fortune by investing in emerging technologies, including cryptocurrencies. In 2017, Altucher became an advisor on cryptocurrency investing, despite having previously criticised Bitcoin in 2013. His ability to adapt his perspective and embrace new opportunities highlights the importance of flexibility and continuous learning in achieving financial redemption.

Lessons Learned

The experiences of these individuals and companies offer valuable insights:

1) Adaptability and Learning from Mistakes

Many investors, like Michael Novogratz, faced significant financial downturns but adapted by studying the market and making informed decisions. The ability to pivot and learn from failures is essential for success in crypto.

2) Risk Management and Diversification

One common mistake in crypto investing is going all-in on a single asset. Those who successfully recovered emphasised diversification, spreading investments across different cryptocurrencies and sectors to minimise risks.

3) Embracing Market Cycles

The crypto market is highly volatile, with bull and bear cycles. Investors who rebuilt understood this and positioned themselves for long-term gains rather than short-term speculation. Patience and strategic buying during downturns helped them recover.

While the cryptocurrency realm offers lucrative opportunities, it is also fraught with risks. The journeys of these individuals underscore the importance of resilience, due diligence, and adherence to security and regulatory standards in navigating and overcoming the challenges inherent in the crypto industry.

About the author

Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.