In their third-ever Unexplained Wealth Order, British Columbian authorities are targeting one of the co-founders of the defunct crypto exchange Quadriga CX.
Seizing “Proceeds Of Crime”
The Canadian province of British Columbia is cracking down on financial irregularities, as evidenced by its recent interest in the founder of Quadriga CX. The now-defunct crypto exchange, which was once the largest in the country, was co-founded by Michael Patryn and Gerald Cotton. The former is now under investigation by British Columbian authorities.
In a press statement released on March 27, Mike Farnworth, Minister of Public Safety and Solicitor General, claimed that instead of accumulating expensive items, the forfeiture seeks to negate the financial kickbacks of criminal activities, thus lowering the incentive for such enterprises.
He said,
“We will continue to take the assets from unlawful activity and redirect the proceeds of crime to much-needed victim services programs and crime prevention initiatives, such as the anti-hate grants to communities announced on Feb. 15, 2024.”
Items Seized From Patryn
British Columbia’s forfeiture office filed its third-ever unexplained wealth order (UWO), revealing that in June 2021, Mounties seized significant wealth from Michael Patryn's possession that could potentially be linked to illicit activities. The items under question include cash of around $250K, 45 gold bars, luxury watches, and expensive jewelry stashed away in a safety deposit box that belonged to Patryn, found at CIBC in downtown Vancouver.
Other items found inside the watch include questionable pieces like a .45-calibre Ruger 1911 pistol and ammunition and fake IDs for Patryn and his two aliases.
The Quadriga Saga
The company has been wrapped in one controversy after another, starting in 2018, when the other co-founder, Gerald Cotton, died mysteriously during his travels in India. Unfortunately, Cotton was the only person who was aware of the passwords to the offline cold wallets. After his death, it was uncovered that Cotton had siphoned away $190 million in crypto to over 115,000 customers who were unable to access their funds.
After Quadriga CX shut down, it was estimated that the company owed $215 million to over 76,000 customers. Of this amount, the bankruptcy trustee, Ernst & Young, managed to reclaim only $46 million to return to the investors.
Patryn’s Response
Patryn's whereabouts were last traced to Thailand, and his occupation remains undisclosed, according to the claim. In his rebuttal to the claim filed in October, Patryn refutes the assertion that the items were derived from or used in unlawful activities. He further contends that the police investigation infringed upon his Charter rights by its conduct.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
