How to Lose $140 million in an Instant

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Let us state the obvious: the QuadrigaCX exchange was very irresponsible in its security protocols to be able to lose $140 million in the same way that corporations can experience data or security breach. This story highlights some of the challenges facing crypto adoption but also its strengths.

Cryptocurrencies developed with a few core principles, two of which are: security and censorship resistance. It is an advantage for many around the world to be able to own and securely store their own assets without the risk of government seizure or theft. Similarly, no organization can prevent anyone from sending transactions on the Bitcoin network. The situation at QuadrigaCX highlights the fact that there is no backdoor for anyone to access these funds and recover them. This would be a benefit if hackers were trying to steal funds from users on the exchange. But in the case that there are not proper protocols in place to protect users funds, it is quite a problem.