QuadrigaCX Exchange CEO Revealed How He Stored Cryptocurrency in Cold Wallets Five Years Ago
The deceased CEO of the Quadriga cryptocurrency exchange, Gerry Cotten, seems to have said how he liked to store his cold wallets. In a 5-year-old podcast, he explained that he liked to store private keys on paper wallets.
This is very important for the cryptocurrency space since Mr. Cotten died in December 2018 and did not provide information regarding the funds stored in cold wallets. Because of this situation, more than $143 million in funds have been lost and users cannot have their money back.
The global audit firm Ernst & Young Inc. is the current independent director to the investigation into QuadrigaCX. About the CEO of the company, the company said:
“Primarily responsible for managing Quadriga and held a significant amount of institutional knowledge regarding the QCX Platform and Quadriga’s business.”
During the True Bromance Podcast with Sage Brocklebank, Michael Karl Richards and Brett Micael in February 2014, he talked about the cryptocurrency market in Canada and the United States. He has also talked about QuadrgaCX and how to store private keys.
Virtual currencies work in a different way than traditional financial institutions. Users are the only responsible for their digital assets. Thus, if they lose their private key, they will not be able to recover their funds. This allows the society to have a financial system that does not depend on intermediaries and relies just on individuals.
During this podcast, the QuadrigaCX founder warned about losing the passwords to the wallets that users have. He compared losing the private keys to “burning cash.” He went on saying that not even the government of the United States could retrieve the coins if users lost their private keys.
He added that paper wallets are a great way to store Bitcoin. Users just need to send Bitcoins to this private key without users having to keep that on the computer if they are not spending the funds. WIth a paper wallet, users store their private key in a safe place and the public key is used to receive payments and send funds to this address.
The cryptocurrency exchange QuadrigaCX has also accused the Canadian Imperial Bank of Commerce (CIBC) of withholding and preventing ease of access to the exchange’s payment partner. The bank said that there were some discrepancies regarding the identity of the users as the main reason for the freeze.
There have been several hacks to cryptocurrency exchanges in the past. This is due to the fact that crypto platforms store users’ private keys on their behalf and do not allow them to have control over them. If the platform experiences a hack or an attack, then users’ funds would likely be lost.
The best way to store funds is by using cold storage wallets and allowing family members to know about how cryptocurrencies work and where the funds are stored.