QuadrigaCX Co-founder's Assets Seized in Unexplained Wealth Order by British Columbia’s Civil Forfeiture Director
Summary:
An unexplained wealth order has been issued by the director of civil forfeiture in the Canadian province of British Columbia, targeting assets linked to a co-founder of the QuadrigaCX cryptocurrency exchange. The order facilitates seizure of items such as cash, gold bars, and luxury goods found in a safe deposit box. It's alleged that these assets are the proceeds of criminal activities. British Columbia’s Minister of Public Safety emphasized that through orders like this, criminals are compelled to prove their wealth's legality.
In the Canadian province of British Columbia, a mysterious wealth order has been issued by the civil forfeiture director to seize cash, 45 bars of gold, and high-end items located in a safety deposit box linked to a QuadrigaCX cryptocurrency exchange co-founder. This court order demands a person to explain their asset acquisition. Public Safety and Solicitor General Minister, Mike Farnworth, said in a statement: "We are once again proving that criminals must demonstrate that their assets have legally been acquired, not through financial crime. The despicable, global, criminal actions of Quadriga Coin Exchange (Quadriga CX) resulted in countless people being stripped of their life savings."
QuadrigaCX was previously Canada's biggest cryptocurrency exchange, but declared bankruptcy in February 2019, following the death of co-founder Gerald Cotten in India, who took with him the private keys to QuadrigaCX's off-network storage systems. According to files given to the British Columbia Supreme Court, these assets allegedly come from criminal activities associated with Quadriga Coin Exchange’s co-founder, Michael Patryn, and Gerald Cotten. The order facilitated the confiscation of a safe deposit box at CIBC Bank and its related account. Since 2006, British Columbia has had civil forfeiture that allows it to seize belongings without criminal prosecution.
Inside the seized deposit box was C$250,200 ($184,250) in cash, gold bars, two Rolex watches, a Chanel J12 Black Diamond watch, and various other pieces of jewelry. Also found were a 45-caliber Ruger 1911 pistol with ammunition, and identity papers with the names Omar Dhanani and Omar Patryn, according to the CBC. The order argues that Patryn had a big part in QuadrigaCX's functions, including misappropriation of client funds and cryptocurrency, justifying asset seizure. The next step would be to get a response from Patryn explaining his wealth. After QuadrigaCX's downfall, Patryn engaged in decentralized finance (DeFi), taking part in various protocols like Wonderland and UwU Lend, under the alias "Sifu.” Michael Patryn, who was previously named Omar Dhanani, changed his name twice in 2003 and 2008 and has been found guilty of multiple financial crimes in the US.
Published At
3/28/2024 12:28:56 PM
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