QuadrigaCX Co-founder Questioned Over Seized Assets

Reading Time: 2 minutes
  • Authorities in British Columbia are attempting to uncover how QuadrigaCX co-founder Michael Patryn accumulated a collection of valuable assets
  • The Director of Civil Forfeiture filed a court order to compel Patryn to detail the acquisition of seized assets cash, gold bars, valuable jewelry, and more
  • Patryn left QuadrigaCX in 2016, three years before it collapse

Authorities in British Columbia, Canada, are intensifying their efforts to unravel the mystery surrounding a substantial cache of assets allegedly linked to Michael Patryn, the surviving co-founder of the now-defunct cryptocurrency exchange QuadrigaCX. On Wednesday, the Director of Civil Forfeiture in British Columbia filed a court order aiming to compel Patryn to provide comprehensive details regarding the acquisition of seized assets, which include cash amounting to C$250,200 ($184,310), 45 gold bars, and valuable jewelry, including a diamond-studded Rolex. Patryn left QuadrigaCX in 2016 and was ousted from his role in another project, Wonderland, after his identity and criminal history were uncovered.

Chat Records Point to Embezzlement

Patryn joined Canadian Gerald Cotten in creating QuadrigaCX in 2013, five years after being deported to Canada from the US following an 18-month spell in prison for helping to run Shadowcrew, a bank and credit card identity scam. He left QuadrigaCX in 2016, three years before the exchange closed when Cotten died with the exchange insolvent and its crypto vaults empty, leading to years of speculation and an investigation into the truth of its collapse.

Patryn’s involvement in QuadrigaCX was exposed following the investigation into its collapse, an investigation that initially seemed to clear Patryn of any involvement in the disappearance of some $185 million in cryptocurrency and cash. However, recent revelations from chat records dating back to 2014 and 2015, allegedly between Cotten and Patryn, purport to be discussions about the misappropriation of funds from the exchange.

Gold, Cash, Jewelry, and Gun Discovered

The filing from the Director of Civil Forfeiture suggests that unless Patryn can demonstrate lawful acquisition of these assets, he may have to forfeit them, with the proceeds earmarked to benefit victims of crime and support crime prevention initiatives. Authorities used the order to seize a safety deposit box at CIBC Bank, which contained C$250,200 ($184,250) in cash, gold bars, watches, and jewelry, along with a .45-caliber Ruger 1911 pistol and ammunition. Identity documents under the names of Omar Dhanani and Omar Patryn were also in the box, according to the Order.

The court is scheduled to hear the case on April 30, giving Patryn a month to prove where he got the money to buy the items.