THE FOUNDER OF THE EXCHANGE QUADRIGACX KEPT PRIVATE KEYS TO COLD WALLETS ON PAPER

During the investigation into the case of the Canadian cryptocurrency exchange QuadrigaCX, it became known that the founder of the exchange Gerald Cotten for some time kept the private keys to cold wallets on paper, printing and placing them in a Bank cell.

Back during his interview on the True Bromance podcast in February 2014, Cotten spoke about the risks of losing private keys to cold wallets and the impossibility of their recovery:

“If you lose the private keys to your cold cryptocurrency wallets, you will lose all your digital assets stored on them, because even the US government with their most powerful computers in the world will not be able to help you recover them.”

The other day, it became known that five more cold wallets of the QuadrigaCX exchange were found. However, with all this, the management of the exchange still does not have access to most of them. Moreover, the exchange continues to lose money.

In early February, a Canadian court released the QuadrigaCX exchange from prosecution of creditors for 30 days, but according to a study, the QuadrigaCX exchange was insolvent long before the termination of work.