Seizure of Assets from Michael Patryn
Michael Patryn, a former co-founder of the defunct cryptocurrency exchange QuadrigaCX, has faced the seizure of assets worth around $1 million by authorities in British Columbia. This action was executed through the province’s unexplained wealth order framework. As per court filings from the Supreme Court of British Columbia, Patryn did not contest this forfeiture, leading to the court’s ruling in favor of the authorities.
Details of the Confiscated Assets
Among the confiscated assets are 45 gold bars, a collection of luxury watches, and various amounts of cash, all discovered in a safety deposit box at CIBC in Vancouver during a Royal Canadian Mounted Police (RCMP) investigation back in 2021. The inventory from the search included:
- Three one-kilogram gold bars
- 42 smaller gold bars
- High-end watches from brands such as Rolex and Chanel
- Rings and other jewelry
- Personal identification documents
- A Ruger .45-caliber handgun with loaded magazines
The civil forfeiture office highlighted that these seized items are believed to have been acquired using funds that were misappropriated from QuadrigaCX customers, particularly during the period leading up to the company’s downfall.
Background on QuadrigaCX
QuadrigaCX, which once held the title of Canada’s premier cryptocurrency exchange, collapsed in 2019 following the death of its CEO, Gerald Cotten, in India. Subsequent investigations revealed that client assets were missing, and by 2016, it became apparent that the exchange had functioned effectively as a Ponzi scheme, utilizing new deposits to facilitate withdrawal requests while Cotten allegedly misappropriated funds for personal use.
Michael Patryn’s Involvement
Investigators assert that Patryn played a pivotal role in the exchange’s dealings and profited from the misappropriated customer funds. His history includes a 2005 conviction in the U.S. for running an online identity theft and money-laundering scheme under the alias Omar Dhanani, which later resulted in his deportation to Canada.
Future Actions and Current Status
The authorities in British Columbia also plan to conduct an examination to see if any of the assets seized may be utilized to compensate defrauded QuadrigaCX creditors. Many claimants have received only a fraction of their losses in the bankruptcy proceedings that concluded in May 2023. Presently, court documents indicate that Patryn’s last known whereabouts are in Thailand, though his current location remains uncertain. Additionally, in 2023, QuadrigaCX’s bankruptcy administrators announced intentions for an interim distribution of funds to its creditors, despite limited recovery of the lost amounts.
