#Bitcoin Self-Custody Losses Exceed $1.5 Billion#

New research shows that over $1.5 billion in Bitcoin losses have been attributed to mismanagement of self-custody, surpassing losses caused by exchange-related incidents. River’s research analysis reveals that approximately 1.6 million Bitcoin are inaccessible due to self-custody, while exchange events, including the Mt. Gox hack and FTX bankruptcy, have resulted in the loss of about 1.2 million Bitcoin. Researchers analyzed wallet activity using a probabilistic model and found that long-term (over 10 years) inactive wallets account for the majority of the losses, while short-term inactive wallets have a lower probability of loss. This implies that many users may have forgotten their private keys, or they have been lost or damaged, preventing them from accessing their Bitcoin. This discovery highlights the risks associated with self-custody of Bitcoin, emphasizing the need for users to take measures to secure their private keys and perform regular backups.