Crypto Investors Overlook Hidden Risk of Permanently Losing Assets

Twenty-one percent of American adults now own cryptocurrency, but most have overlooked a critical aspect of their holdings: what happens to them when they die.

A staggering number of crypto investors - as high as 89% - are concerned about the fate of their assets after death, yet few have taken steps to address this issue.

Between 2.3 million and 3.7 million Bitcoin have been permanently lost, representing $270 billion to $440 billion at current prices.

This problem is not just behavioral, but also structural: cryptocurrency held in self-custody does not pass through the same legal and financial systems that handle bank accounts or real estate after someone dies.

Wallet developers are starting to build inheritance features directly into their products, such as Kresus' recent launch of Kresus Inheritance, which allows beneficiaries to gain access to assets after a defined period of inactivity.

However, regulatory frameworks must also be updated to recognize digital assets within probate and estate systems, allowing for clear rules around legal transfer, tax reporting, and beneficiary verification that work across jurisdictions.