The new study reveals that human error, not hacking, is the biggest threat to crypto wealth, with 35% of holders losing access to wallets or accounts. Forgotten passwords, lost seed phrases, and failed 2FA were the main causes, while platform bankruptcies added to losses.

The Primary Causes of Asset Loss

A new study by Oobit has revealed a sobering reality for the digital asset space: More than one-third of cryptocurrency holders, or 35%, have lost access to a wallet or account at some point. The data suggests the greatest threat to crypto wealth is not sophisticated hacking, but simple human error.

Forgotten passwords or login failures were cited by 33% of 1,000 U.S.-based crypto holders who participated in the study, followed by 21%…