QuadrigaCX Revealed a Giant Hole in Crypto Industry Storage Practices

QuadrigaCX Revealed a Giant Hole in Crypto Industry Storage Practices

Events in the recent past have served as a harsh reminder that crypto storage practices need improvement.

The cryptocurrency industry is growing a bit like a great dane puppy. One day, all of the parts will have proper proportions. For now, however–the industry is awkwardly clomping around on oversized paws; certain parts of the industry are growing quickly, while other pieces are taking longer to develop.

This was most recently demonstrated when the CEO of Canadian cryptocurrency exchange QuadrigaCX passed away, bringing the keys to the exchange’s offline storage wallets with him to the grave. 115,000 people have been left without access to their funds, including one man whose life savings of over CAD$400,000 were locked into the exchange.

The scandal shone an uncomfortable spotlight on the fact that the technological and regulatory sides of cryptocurrency storage are vastly underdeveloped.

At the same time, on a more micro-level, hackers have continued to find new ways to pry their fingers into unsuspecting crypto hodlers’ wallets. In addition to the crypto jacking malware, clipboard lurkers, and phishing sites that have plagued cryptocurrency users since the beginning, hackers are beginning to use more sophisticated methods of theft, inclduing SIM swapping.