Quadriga CX founder Gerry Cotten died in December possibly holding the only keys to C$190 million ($143 million) in cryptocurrencies -- but five years ago, he revealed exactly how his digital exchange stored Bitcoin for its clients.
Cotten was interviewed on the “True Bromance Podcast” in February 2014 when he was living in Vancouver, in which the show’s hosts -- actors Sage Brocklebank and Michael Karl Richards, and producer Brett Michael -- were given a primer on cryptocurrencies and an explanation of his new venture. About an hour in to the rambling discussion, Cotten warned of the dangers of losing passwords needed to access Bitcoin.
“It’s like burning cash in a way," Cotten told his hosts. “Even the U.S. government, with the biggest computers in the world, could not retrieve those coins if you’ve lost the private key. It’s impossible to retrieve those."The warning resonates now with more than 100,000 customers in light of Quadriga’s current woes. Cotten, who ran Quadriga off his laptop, died while traveling in India, and no one knows how to recover the cryptocurrencies the exchange was holding for clients. Quadriga’s operations have been shuttered and the Vancouver-based firm is reorganizing under court-approved creditor protection with the help of Ernst & Young Inc. Read more