#Bitcoin self-custody losses exceed $1.5 billion#

River's research analysis reveals that losses from self-custody mismanagement have surpassed those related to exchanges, totaling approximately 1.6 million BTC (over $1.5 billion), exceeding the 1.2 million BTC (over $1.1 billion) lost in events like the Mt. Gox hack and FTX bankruptcy. The study employs a probability model to analyze wallet activity, finding that long-term inactive wallets (over 10 years) account for the majority of losses, while short-term inactive wallets have a lower probability of loss. This indicates that many users may be unable to access their self-custodied Bitcoin due to forgotten passwords, lost private keys, or damaged devices, resulting in significant losses. This data also serves as a reminder for investors to prioritize security measures when self-custodying, such as backing up private keys and utilizing hardware wallets, to prevent losses due to mismanagement.