#Bitcoin Self-Custody Losses Exceed $1.5 Billion#

According to River's research analysis, Bitcoin losses due to mismanagement of self-custody have surpassed those related to exchange incidents, totaling approximately 1.6 million BTC, worth over $1.5 billion. This is more than the 1.2 million BTC (worth over $1.1 billion) lost in exchange incidents like the Mt. Gox hack and the FTX collapse. The research indicates that long-term (over 10 years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss. This suggests that many users may have forgotten their private keys or their hardware wallets have been damaged or lost, resulting in them losing access to their Bitcoin. This data indicates that while self-custody can provide higher security, it also requires users to assume greater responsibility in safeguarding their private keys and hardware wallets, preventing losses due to mismanagement.