Quadriga CEO Warned About the Danger of Losing Keys to Crypto Wallets
Jerry Cotten, CEO of Canadian crypto exchange Quadriga, died in December 2018 and took with him access to cold wallets that stored more than $145 million of customer money in crypto. Previously, he warned this could happen.
According to Bloomberg, Cotten took part in the “True Bromance Podcast” television program in 2014. At that moment he talked about the fundamental principles of the work of cryptocurrencies. Among other things, the departed CEO warned that in case of losing the keys to the crypto wallet, the money will not be retrieved. “It's like burning the cash,” argued Cotten.
According to him, even the US government with all the most powerful computers in the world wouldn't be able to return the money to the users if they lost access to the wallet.
In addition, Cotten advised users to keep their BTC on paper wallets. “The best way to secure your BTC is to print the private key and put it in the bank vault,” said the CEO.
Also, as the Cotten said, Quadriga did just like that. It means, the exchange has created a paper wallet, where it sent customers coins. The private keys themselves were supposedly kept in a bank vault.
Despite the words of Cotten, the crypto exchange claims that only the CEO had all the private keys, and he was not giving them to anyone before his death. This means that more than $145 million of client money in cryptocurrency can be lost forever.