British Columbia authorities are intensifying their efforts to hold individuals accountable for their involvement in the collapse of QuadrigaCX, a cryptocurrency firm that left thousands facing substantial losses.
In the latest development, the province has targeted Michael Patryn, a co-founder of QuadrigaCX, seeking explanations for assets linked to alleged fraudulent activities.
British Columbia pushing to seize Patryn assets
British Columbia has filed its third unexplained wealth order (UWO) case, focusing on assets totalling over $600,000 belonging to Michael Patryn, a co-founder of QuadrigaCX.
The Canadian province alleges that these assets, including cash, gold bars, jewellery, and luxury watches, are connected to fraud involving QuadrigaCX, which resulted in significant losses for cryptocurrency holders.
Patryn, also known by various aliases, contests the allegations, asserting that the seized assets are not proceeds of unlawful activity. However, the province maintains its pursuit, highlighting the significance of these legal measures in combating financial crimes.
Who is Patryn and why are his assets being pursued?
Michael Patryn, also known by aliases such as Michael Dhanani and Omar Patryn, emerged as a significant figure in the QuadrigaCX cryptocurrency debacle.
As a co-founder of QuadrigaCX alongside the now-deceased Gerald Cotten, Patryn played a pivotal role in the operations of the now-defunct exchange. However, his involvement has come under scrutiny amidst allegations of fraudulent activities.
Patryn’s role in QuadrigaCX extended beyond its founding, with authorities alleging his deep involvement in various aspects of the exchange’s operations, including the misappropriation of customer funds and cryptocurrency.
The collapse of QuadrigaCX in 2019, following Cotten’s sudden death in India, thrust Patryn into the spotlight as authorities sought to unravel the circumstances surrounding the exchange’s demise.
The pursuit of Patryn’s assets by British Columbia authorities stems from suspicions that these assets are linked to fraudulent activities involving QuadrigaCX.
A safety deposit box containing cash, gold bars, luxury watches, and other valuables was seized by the RCMP, totalling over $600,000. The British Columbia province alleges that these assets represent proceeds of unlawful activity related to QuadrigaCX, which left thousands of investors facing significant losses.
Despite Patryn’s contention that the seized assets were not obtained unlawfully, British Columbia remains resolute in its pursuit, utilizing legal mechanisms such as unexplained wealth orders (UWOs) to compel individuals to account for the sources of their wealth.
Patryn’s legal history, including a prior conviction in the United States for conspiracy related to online money laundering services and subsequent deportation to Canada, further complicates the matter and adds weight to the allegations against him.
The QuadrigaCX fiasco
The collapse of QuadrigaCX, particularly the sudden death of co-founder Gerald Cotton in 2018, sent shockwaves through the cryptocurrency community.
The ensuing fallout left many investors grappling with substantial financial losses and raised questions about the regulation and oversight of digital asset exchanges.
In the aftermath of QuadrigaCX’s demise, efforts to unravel the complexities of the case have revealed a web of alleged misconduct and mismanagement.
The pursuit of individuals like Patryn represents a step towards holding accountable those responsible for the losses incurred by QuadrigaCX’s clients.
As the legal proceedings unfold, stakeholders will be closely monitoring developments, seeking clarity and closure in a saga that has left a lasting impact on Canada’s cryptocurrency landscape.
This article first appeared on Invezz.com
