MacMusic  |  PcMusic  |  440 Software  |  440 Forums  |  440TV  |  Zicos
acirc
Search

Digital exchange loses $137 million as founder takes passwords to the grave

Saturday February 2, 2019. 05:40 PM , from Ars Technica
Enlarge (credit: Jakub T. Jankiewicz / Flickr)
A cryptocurrency exchange in Canada has lost control of at least $137 million of its customers’ assets following the sudden death of its founder, who was the only person known to have access to the offline wallet that stored the digital coins. British Columbia-based QuadrigaCX is unable to access most or all of another $53 million because it’s tied up in disputes with third parties.
The dramatic misstep was reported in a sworn affidavit that was obtained by CoinDesk. The affidavit was filed Thursday by Jennifer Robertson, widow of QuadrigaCX’s sole director and officer Gerry Cotten. Robertson testified that Cotten died of Crohn’s disease in India in December at the age of 30.
Following standard security practices by many holders of cryptocurrency, QuadrigaCX stored the vast majority of its cryptocurrency holdings in a “cold wallet,” meaning a digital wallet that wasn’t connected to the Internet. The measure is designed to prevent hacks that regularly drain hot wallets of millions of dollars (Ars has reported on three such thefts here, here, and here.)
Read 6 remaining paragraphs | Comments
https://arstechnica.com/?p=1450287

Related News

News copyright owned by their original publishers | Copyright © 2004 - 2019 Zicos / 440Network
Current Date
Apr, Tue 23 - 08:36 CEST