Unprepared transfer of bitcoin and crypto assets is a problem. Can’t we pass them on to our loved ones as we usually do with other inheritances? Of course, yes, bitcoin can be dedicated.
Canadian case of loss of crypto assets on QuadrigaCX
Here we discuss the case of Marianne Bulger, a partner at Drive Capital and founder of Prospect, a postal board for Canadian technology start – ups.
In January 2018, when BTC reached ATH of nearly $ 20,000, many of those around him started talking about bitcoin and cryptocurrencies. Not wanting to miss this opportunity, Bulger paid $ 2,000 to buy the equivalent of 1 decibitcoin.
To better understand a decibitcoin », We invite you to read our article on buying a bitcoin fraction.
” The advice I received was to buy bitcoin because it was going to be worth one day said Marianne Bulger.
After said cryptocurrency asset purchase, experienced investors advised him to keep them safe. One penny was not withdrawn from his account at Quadriga, an online exchange platform for buying and selling money.
And as an apprentice investor, she made sure to protect her private key from malicious actions or potential loss. And you know this key is like a password that allows access to our crypto assets.
The fall of QuadrigaCX
It was the sudden death of Gerald Cotten, founder and CEO of QuadrigaCX, that changed a game for cryptocurrency asset holders like Bulger. It happened during a philanthropic trip to India, a country renowned for its ability to report fake deaths.
He took with him, in his grave, digital keys belonging to about 115,000 customers, amounting to 250 million Canadian dollars in cryptocurrency from investors.
That is how the Quadriga community and the press rallied against the late Cotten and his company. Cointribune donated an article on it. Even Netflix decided to make a documentary about the QuadrigaCX case.
The Ontario Securities Commission also issued a report on the exchange and its deceased boss. She found out that Gerlad Cotten was engaged in fraudulent activities and a Ponzi scheme. Unfortunately, the transfer of cryptocurrencies was not yet common at the time.
Bulger did not throw in the towel
The failure of QuadrigaCX did not tarnish the image of the cryptocurrency in the eyes of the founder of Sight. So she switched to Coinsquare, another more trusted and transparent exchange.
Here are his comments:
” Gerald Cotten’s death was obviously a strange thing and he took the passwords with him, but I did not realize that I was the only password holder for this information. »
So his question:
” What if I die or something happens to me? My family would not be able to access these digital assets. They would be basically trapped in the blockchain forever. »
Cryptocurrency and decentralized cryptocurrency assets
The advantage of cryptocurrencies is that they are decentralized. Third parties did not trust, in fact.
Eric Bury, CEO of Willful, decided it was necessary to develop a legally valid do-it-yourself platform. Cost of service: 99 dollars.
Bury would like to point out that Willful has nothing to do with the services provided by the bank. You know that this institution allows the execution of an executor to verify the accounts of the deceased in order to then transfer his assets to his relatives.
When it comes to transferring bitcoin and other cryptocurrencies, Bury believes “ there is no customer service number to call and no way to get them unless the enforcer has the 16-digit private key. »
What sets Coinsquare apart is its ability to provide access after presenting proofs like a valid will. For the holder of the encrypted wallet, he is obliged to keep his passwords secure. In addition, it is his responsibility to communicate the inventory of his assets to his relatives or testamentary executor. This will make it easier to transfer cryptocurrencies after death, according to Esther Abecassis, estate attorney at Devry Smith Frank LLP.
Erin Bury continues her explanation:
” If you think of your partner, parents, or best friend, you may know their public accounts, like their social media accounts, but do you really know if they have cryptocurrencies? Do you know if they have NFT? Do you know if they have investments with platforms like Coinsquare or Wealthsimple? »
” It’s not like 20 years ago, where everyone they did business with had a bank, and had different types of accounts with that bank, and you may have had one or two financial institutions that had your assets at you. Today it is so different “, he says.
Willingness, the best place to list your goods
Moreover, on March 18, the company set up a feature called ” List of goods “. Thanks to this, its users can create a document listing the physical, financial and insurance assets to be kept at will. And why not crypto assets.
This asset list can provide a space to track digital assets with financial value and spirit. To know:
- purchased digital media (movies, e-books, singing, etc.);
- valuable digital media (digital art, photo collection, etc.);
- cryptocurrency holdings;
In addition, that list does not limit the frequency of asset updates.
To store passwords, Willful used 1Password, a password management company. 1Password imitates save features that can be shared with others. Passwords to bank accounts, social media and cryptocurrency can be stored there.
It would be necessary to provide instructions for locating your passwords to ensure that your family has access to accounts and digital assets after your death. This could be especially achieved with the help of a USB key located in a safe place among your personal belongings.
Basically, you need to make a plan that will make it easier for your loved ones to access crypto assets after you die. If applicable, your cryptocurrency wealth “ may very well stay out of date “, Emphasizes Esther Abecassis.
” Balancing is about keeping your cryptocurrency safe while you are alive and making it accessible to your family members after you die. You need to trust the people you are giving this information to. »
Following the QuadrigaCX fiasco, Bulger decided to draw up a will and a list of assets at the same time.
Here are his comments:
” When we had our son last year, I realized that it was no longer my business to keep track of those coins. I wanted to make sure I had the right system and elements in place to protect my son in the long run, and to make sure he benefited from all the hard work and fun I had on the Internet. »
Nota Bene: It’s better to explore succession options for cryptocurrency holdings with a professional. It may, in fact, suggest planning techniques such as double will or creating trust. Therefore, the Bitcoin transfer is not a myth, it is an opportunity accessible to everyone. Without exception.
Source: Toronto Star
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