Anyone who knows anything about cryptocurrency and exchanges will know that security is of the utmost importance, but the plight of crypto exchange Quandriga CX might highlight just how ridiculous the whole concept has become.
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Whilst it’s undoubtedly important to keep your cryptocurrency safe, the fact is that Canada’s biggest cryptocurrency exchange has had its whole value wiped off the board overnight after its founder died suddenly in possession of the only password. Whilst it’s great to know that the security is that good, it must also be pretty damn annoying for the people that had over £145 million tied up in it. Ouch.
Gerald Cotten passed away suddenly from complications due to Crohn’s disease back on December 9th as he was travelling to India to open an orphanage for children in need and his widow Jennifer Robertson is adamant that he was the only person that knew the password for all the crypto assets that were in ‘cold storage’. Those are the coins that aren’t stored online as these are more vulnerable to attacks from hackers.
As a result of this, Quandriga CX has been thrown into chaos. Robertson says she access to Cotton’s laptop but it’s encrypted and she can’t get into it and as such Qaudriga’s inventory of cryptocurrency has become ‘unavailable’ and some of it may be lost for good. She’s applied for creditor protection as it attempts to address ‘significant financial issues’ but to be honest it just sounds like the whole thing is a massive mess and people are going to have lost a hell of a lot of money because Cotten didn’t write down his password somewhere or have a backup way of accessing the exchange in case of such an eventuality. I guess that’s the risk you take when you’re playing with cryptocurrency though hey?
For more of the same, check out another one that disappeared with millions and left a pretty dumb message at the end of it all. Typical.