Reminder: The Dangers of Centralized Control in Cryptocurrency (The QuadrigaCX Case)

In 2019, the cryptocurrency world was shaken by the news that the CEO of QuadrigaCX, a Canadian cryptocurrency exchange, had died suddenly while traveling in India. Gerry Cotten, the 30-year-old CEO, was the only person with access to the exchange's cold storage wallets, where $137 million worth of cryptocurrencies were stored. This meant that after his death, no one could access these funds, leaving more than 100,000 customers unable to retrieve their assets.

This incident highlights the dangers of centralized control in the world of cryptocurrency. While one of the main selling points of cryptocurrency is its decentralized nature, many crypto firms still operate with a high degree of centralization. This means that a single person or entity has control over a large portion of the assets on the exchange. In the case of QuadrigaCX, this centralization proved to be disastrous.

After Cotten's death, the exchange filed for creditor protection as it attempted to access the lost funds. However, even with the help of top security experts, they were unable to unlock Cotten's encrypted laptop and retrieve the cryptographic keys to the cold storage wallets. This left customers in limbo, unsure if they would ever be able to recover their assets.

The QuadrigaCX case serves as a cautionary tale for the cryptocurrency industry. It highlights the need for exchanges to implement better security measures and to ensure that there are multiple people with access to critical information and assets. It also underscores the importance of customers doing their due diligence when choosing an exchange and ensuring that their assets are stored in a secure manner.

The QuadrigaCX case serves as a reminder that it is important for both exchanges and customers to take appropriate measures to mitigate these risks and ensure the safety and security of their assets.

Have you thought about this risk? Leave alone your mortality and your family being able to access these funds after your time, what about funds unavailability due to mortality of the centralised "foundations", "labs" & "blockchain cum exchanges".

Hope you have researched this for your coins and tokens...