Crypto Exchange looses access to funds in Cold Storage

Yikes!

According to news released from Canada, a local exchange has lost access to their funds in cold storage.

More about it can be seen here:

https://www.msn.com/en-us/money/markets/this-crypto-exchange-cant-repay-the-dollar190-million-to-customers-because-the-ceo-died-with-the-only-password/ar-BBT9CtW?ocid=spartandhp

Basically is what happened is that roughly $190 million worth of crypto was in their cold storage and only the founder was able to access them.

This was to ensure that no one could steal them.

Not a bad idea until the founder died.

Now the exchange cannot access the funds and the exchange is basically insolvent.

According to the article they are thinking about selling off operations to compensate investors.

Let this be a lesson to other exchanges using cold storage.