#Bitcoin self-custody losses exceed $1.5 billion#

Recent River research indicates that over $1.5 billion worth of Bitcoin has been lost due to poor self-custody management, surpassing the amount lost in exchange-related incidents. The analysis reveals that approximately 1.6 million Bitcoins are inaccessible, while exchange incidents like the Mt. Gox hack and FTX bankruptcy resulted in the loss of 1.2 million Bitcoins. The study utilizes a probabilistic model to analyze wallet activity, finding 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 suggests that many users might have forgotten their private keys or lost devices storing them, rendering their Bitcoin inaccessible. This data underscores that while exchanges pose security risks, users need to be extra cautious with self-custody of Bitcoin, ensuring proper private key management and data backup to avoid losses due to mismanagement.