The founder of crypto-exchanges QuadrigaCX, could store private keys exchange, recorded on paper in a Bank vault, according to the publication Bloomberg, citing an interview with Cotto the True Bromance podcast, recorded in February 2014. In this Cotten warned of the danger of losing the keys to cold wallets and, consequently, loss of access to stored on them the assets.
“Even the US government with the most powerful computers in the world will not be able to get these coins, if you lose the secret key,” — said at the time, Cotten.
He further explained that the best way to keep private keys, which basically are a chain of numbers and letters is to print them out and keep offline in a safe.
“So you can never lose your Bitcoins (BTC), until someone will crack the safe in the Bank and not steal recorded on paper private keys,” Cotten added.
There is hope that the purses will be found
The founder of Quadriga, said that the team of the exchange, in fact, keeps his private key offline in a Bank vault company:
“In fact, we put a bunch of paper wallets in the safe, remembering their addresses. So we can just send the money back to the Bank each time. We just sent a money of our Bitcoin app directly on these paper wallets, and thus keep them safe.”
Recall that the Quadriga are unable to access your cold wallet, where she kept most of the assets, because Cotten, who died suddenly in early December, was single-handedly responsible for the wallets and the corresponding keys. It is assumed that the exchange has only 375 000 dollars in cash, while the needs of its users 260 million canadian dollars.
In connection with the threat of bankruptcy, the exchange asked for protection from creditors by a canadian court. But perhaps 115 000 users trying to recover their funds, there was, albeit a Ghost, but still a chance that the keys of the cold storage will be found.
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