According to Cointelegraph, Brazilian cryptocurrency streamer Fraternidade Crypto lost thousands of dollars due to unsafe self-custody practices after accidentally exposing his private key during a live stream on YouTube on August 29. Ivan Bianco, the owner of the channel, was attempting to access his passwords for the blockchain games platform Gala Games through a text file on his computer when he inadvertently revealed the seed phrase for his MetaMask wallet, which contained a significant amount of Polygon (MATIC) tokens.

Shortly after the incident, Bianco closed the live stream but was unable to recover the funds. He later claimed that one of his viewers accessed his MetaMask wallet using the private key and stole his entire stash of 86,000 MATIC, worth around $50,000 at the time. Bianco said he lost his entire life savings in the accident and pleaded with the viewer to return the money for a reward. He also stated that he planned to file a complaint with the local police.

Some online sources suggest that Fraternidade Crypto may have managed to retrieve at least some of the funds. Local crypto executive Guilherme Rennó reported on August 30 that there were rumors Bianco had recovered a "good part of the money." Rennó emphasized the importance of extreme care when it comes to self-custody, advising crypto users not to store their seeds and passwords on their computers or in easily accessible places.

The incident highlights the risks associated with self-custody of crypto assets, such as theft, destruction, or loss. Cryptocurrency enthusiasts recommend investors diversify their types of cryptocurrency storage to prevent the loss of their entire life savings. While self-custody allows users to essentially "be their own bank," it is still prone to many risks, as demonstrated by the popular expression "not your keys, not your coins."