☠️ Crypto after the owner's death
In 2021, Gerald Cotten, the founder of Quadriga, passed away. He had access to $190 million in crypto, and no one else did.
Because of this, his crypto is still stuck in the blockchain — and no one can touch it.
In crypto, if the owner dies and no one knows their seed phrase — the cryptocurrency disappears forever. But there are still ways out; they just need to be thought out in advance.
🍀 How to pass on crypto after death
🟢Paper method
The seed phrase is written down and hidden in a bank safe deposit box. When the owner dies, the bank will give the paper with the seed phrase to their relatives.
🟢Digital file
This method is even more complicated than the paper one. If the seed phrase password is stored on a flash drive, where do you store the password to the flash drive itself? Apparently, you'll have to use paper and a safe again.
🟢Exchanges
Binance and Bybit have an inheritance mode: you can designate a trusted person who will gain access after the owner's death — upon confirmation and documentation.
✍️ Is a will necessary?
In Russia, most likely not, as the legislation simply cannot obtain confirmation that the crypto belonged to a specific person.
Therefore, the only way to approach the legal transfer of funds is through inheritance on CEX exchanges.
This is what the ex-CEO of Binance recently spoke about, against the backdrop of the news that the exchange nowacceptsinheritance requests.
"This topic is avoided, but we cannot live forever. Every platform should have a 'will' function, so that when a person passes away, their assets can be fairly distributed," noted CZ.
Have you ever thought about how you will pass on crypto as an inheritance?
