QuadrigaCX founder revealed where he stored private keys in podcast years ago

16 Feb, 2019 | Updated: 16 Feb, 2019
by Fifi Arisandi
Update
QuadrigaCX founder revealed where he stored private keys in podcast years ago

The late QuadrigaCX's founder, Gerald Cotten may have stored all the private keys on paper, at least that's what he did years ago. 

The drama of QuadrigaCX continues, as new information is revealed day-by-day.

Read more: QuadrigaCX: Judge delays decision on creditors' legal representation

With the main issue lies on the fact that the only person who’s said to have the private keys to all the customers’ fund has died, it may be the hint everyone has been waiting for.

According to Bloomberg, the deceased founder, Gerald Cotton revealed where he stored all the private keys in a podcast 5 years ago.

Interviewed by actors Sage Brocklebank and Michael Karl Richards on the True Bromance Podcast, he talked about his then new venture, the QuadrigaCX.

In the one-hour interview, he mentioned about the danger of losing Bitcoin private keys, which is exactly the thing that’s happening right now to his company.

“It’s like burning cash in a way. 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,” he said to the hosts.

He went on by saying his opinion about the safest way to store them, which is using the old-fashioned and “outdated” method, a paper.

“The paper wallet is a great way to store your Bitcoins. Basically, all you need to send Bitcoins is your private key, which is a string of, a ton of numbers and letters,” he said.

He elaborated further by saying, “The best way to do it is take your private key, print it off, store it offline in your safety deposit box, vault, whatever, and then take the public key, which is your address, and use that to send money to it. So that way you can never have your Bitcoin stolen, unless someone, like, breaks into the bank, steals your safety deposit box and gets into your private key and so forth.”

According to his statement, that was exactly what he did with his firm back then.

“At Quadriga CX, we’re obviously holding a bunch of Bitcoins that belong to other people who have put them onto our exchange. So, what we do is we actually store them offline in paper wallets, in our bank’s vault in a safety deposit box because that’s the best way to keep the coins secure,” he said.

He added further, “Essentially we put a bunch of paper wallets into the safety deposit box, remember the addresses of them. So, we just send money to them, we don’t need to go back to the bank every time we want to put money into it. We just send money from our Bitcoin app directly to those paper wallets and keep it safe that way.”

While there’s a chance that he‘d changed his storing method overtime, this is definitely something worth looking into further.

That said, the decision is solely on the hands of the judge, who handles the QuadrigaCX case on whether or not to expand the investigation by searching for “papers” that might hold the private keys, as hinted by Cotten years ago.

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