Recent analysis has shown that user errors are the cause of the loss of over 913,000 ETH, equivalent to $3.43 billion. Such losses occur due to input mistakes and smart contract vulnerabilities.
Losses Due to User Errors
According to estimates, 913,111 ETH worth $3.43 billion has been permanently lost due to user errors and contract issues. This represents 0.76% of total ETH supply.
Major Mistakes and Vulnerabilities
The largest losses noted are due to the Parity Multisig vulnerability in 2017, which locked 513,746 ETH worth $1.93 billion. There are also known losses from private key mistakes and bugs in contracts.
Outlook and Consequences of Losses
Grogan stresses that the $3.4 billion figure significantly underestimates the actual lost amounts, as it does not include lost private keys and other forms of inaccessibility.
Ethereum losses due to user mistakes and vulnerabilities serve as a reminder of the importance of security and caution in cryptocurrency handling.
