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Study: Over $1.5 billion worth of BTC lost due to poor self-custody management, surpassing losses from exchange incidents
Odaily Planet Daily News According to River's analysis, the amount of BTC lost through self-hosting exceeds the amount lost on the exchange. The company estimates that due to poor self-management, about 1.6 million BTC (worth over 1.5 billion US dollars) are inaccessible, while the amount of BTC lost in exchange-related events such as Mt. Gox hack and FTX bankruptcy is 1.2 million (worth over 1.1 billion US dollars). River stated that it has adopted a detailed approach, considering the inactivity of wallets in different time periods. This method uses probability estimation to determine the likelihood of funds being permanently inaccessible. For example, wallets that have been idle for more than ten years (excluding wallets related to Satoshi Nakamoto) account for the largest share of estimated losses. In contrast, the probability of loss for wallets with shorter idle times is significantly lower.