Where is the safest place to store cryptocurrency has always been a debated issue, some say offline, others say online, and some experts say store it in an exchange. As this story reveals one of the most important things is never to have one password stored in a single location to your cryptocurrency. One of Canada’s largest cryptocurrency exchange QuadrigaCX has just lost €130 million in users cryptocurrency after their CEO passed away. Unfortunately, this appears to be a situation where the CEO died, and he was the only person who knew where the password was kept to the firm’s cryptocurrency cold wallet.
Cryptocurrency can easily be lost, particularly if only one person is the only one with the private keys used to access the wallet where the cryptocurrency is stored. Its estimates that about 25 per cent of all bitcoins in circulation have already been lost forever due to people forgetting their passwords and people dying with no records of their private keys or passwords. In these cases the cryptocurrency is not actually lost, it still exists, but the big problem is that nobody can touch or access it because nobody has knows the private keys.
Following the death of their CEO, Quadrigacx has reportedly lost 26,488 BTC, 11,278 BCH, 11,149 BSV, and 35,320 BTG. About 200,000 LTC and 430,00 ETH. Significant amounts of customer investments are reported to be locked; one customer is reported to have lost up to €610,000.
Should Cryptocurrency exchanges need regulation so they can protect themselves from this type of situation. Defenetly business that provides cryptocurrency services should be able to provide customer restaurants that their investment is not just hanging on a single person knowing the key.