#Bitcoin Self-Custody Losses Exceed $1.5 Billion#

A study by River reveals that the amount of Bitcoin lost due to mismanagement of self-custody has surpassed losses from exchange-related events. The study estimates that around 1.6 million Bitcoin are inaccessible due to self-custody, representing over $1.5 billion in value. In contrast, exchange events like the Mt. Gox hack and FTX bankruptcy have resulted in the loss of 1.2 million Bitcoin, valued at over $1.1 billion. The study employed a probabilistic model to analyze wallet activity, discovering that long-term (over 10 years) inactive wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss. This finding suggests that while self-custody offers complete control over crypto assets, it also comes with higher risks, particularly in the long-term storage aspect. Users need to implement proper security measures, ensuring the safety of private keys and regularly backing up data, to avoid losses arising from self-custody.