The civil forfeiture director from British Columbia province in Canada made an order to seize assets classified as the proceeds of criminal activities orchestrated by the Quadriga Coin Exchange (QuadrigaCX) executive.
The order seeks to confiscate the unexplained wealth from Michael Patryn and Gerald Cotten. Among the targeted assets are luxury items, cash and 45 gold bars discovered in the safe box that regulators linked to the QuadrigaCX cofounder.
Former Chief QuadrigaCX Facing Assets Seizure Order
The unexplained wealth order filed by the Canadian authority involves a court order compelling the individual to disclose the acquisition of the assets. The British Columbia Public Safety and Solicitor General Mike Farnworth confirmed making the order in the fight against criminality in the crypto space.
Farnworth explained that the action aligns with the regulator’s resolve to counter crypto criminality by compelling individuals to prove that the assets possessed are lawfully acquired and not tied to financial crime. The solicitor general indicated that criminal actions orchestrated by QuadrigaCX left thousands of Canadians with lost life savings.
The order relates to QuadrigaCX, though the largest crypto exchange in Northern America plunged into insolvency in 2019 when cofounder Gerald Cotten died. The crypto executive death led to the loss of private keys to the cold wallets he claimed to store the assets.
Canadian Authorities Seizing Assets Owned by QuadrigaCX Co-founder
The filing to British Columbia identifies the assets as proceeds of illicit activities that Michael Patryn orchestrated as a cofounder of QuadrigaCX alongside the now-deceased Gerald Cotten. The unexplained wealth order enabled the Canadian authorities to seize the safe deposit box from the CIBC Bank, where Patryn also held an account.
Civil forfeiture has existed in the British Columbia province since 2006. It allows the province to confiscate property acquired as proceeds of crime without imposing criminal charges.
The order identified the particulars within the safe deposit box as $184,250 cash held in Canadian dollars, two luxurious Rolex watches, jewelry items, a J12 Black Diamond watch and gold bars. The filing reveals that the box had a 45-caliber Ruger 1911 pistol and ammunition, besides identity documents that bore Omar Dhanani and Omar Patryn’s names.
Patryn Linked With QuadrigaCX Operations
The order argues that Patryn had significant input in QuadrigaCX’s operations, leading to the misappropriation of customer deposits and crypto. The order justifies the assets’ seizure, prompting Patryn to account for the wealth.
Meanwhile, Patryn has, since the QuadrigaCX collapse, undertaken several decentralized finance (DeFi) ventures. The former chief participates in Wonderland protocol besides the UwU Lend as Sifu.
The identity documents held within the safebox affirm Patryn’s previous name as Omar Dhanani, only to change names in 2003 and 2008. In the past, Patryn was a convict of various financial crimes orchestrated in the US. In the wake of the QuadrigaCX scandal, the emergence of an AI crypto trading robot demonstrates a technological pivot aimed at providing enhanced security and transparency, thereby helping to rebuild trust in the digital currency market by offering automated, algorithmic trading solutions designed to minimize human errors and the risk of fraud that previously led to significant financial losses for investors.
