Canadian Crypto Exchange Lost $250 Million In Coins
Some bad news this Monday morning for those who have their crypto coins stored with the QuadrigaCX Exchange based in Canada as the company has announced they've lost $250 Million of users coins.
According to CoinDesk, QuadrigaCX has filed for creditor protection after their founder Gerald Cotten died and a vital password was lost with him.
The coins in question were placed in a cold wallet by Cotten before his death to safeguard them from theft. A cold wallet is merely a computer which is not connected to the internet, thus preventing access by the outside world. The issue here is that Cotten appears to have encrypted the hard drive of the computer with a password that only he knew.
Since his death, no one else within the company has been able to access the hard drive where customer coins are stored. Without the password its impossible to decrypt the drive and get the coins back. This is one of the adverse side effects of crypto coins, they are untraceable, and if you lose them, there is no way to get them back or regenerate them.
Cotten's wife has recently spoken out about the incident stating the company owes users up to $250 Million ($190 Million USD), but it seems unlikely they will ever be able to recover the funds for their users.
Thought the world of cryptocurrency seems exciting and new there are many incidents similar to this where coins are either lost or stolen by large exchanges which should put doubt into peoples minds for the future of the currency.