According to a study by the River platform, 1.57 million BTC have been permanently lost by self-custody users, with nearly 98% lost before 2020. This figure is close to the 1.51 million BTC lost on exchanges, divided into 1.18 million from hacks, 155,000 from bankruptcies, 138,000 from internal fraud and 32,000 from operational failures. However, these two figures are not truly comparable: exchange losses correspond to documented incidents with sometimes subsequent reimbursements, while the self-custody figure is an approximate estimate based on on-chain data. The Coldcard vulnerability, which enabled the theft of over 1,300 BTC from vulnerable seeds, illustrates the importance of using multisig solutions to avoid a single point of failure.
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