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Canadian Authorities Target QuadrigaCX Co-founder with Unexplained Wealth Order
Canadian authorities have filed a third “unexplained wealth order” application with the British Columbia Supreme Court targeting the co-founder of QuadrigaCX, Michael Patryn, to explain how assets were acquired.
QuadrigaCX filed for bankruptcy in Canada in 2018 after its CEO, Gerald Cotten, died under mysterious circumstances in India, taking the only known private keys to the exchange’s wallets with him. Although some of the funds owed to the exchange’s customers have been paid back, large amounts are still missing.
Legal Action and Asset Seizure
This latest unexplained wealth order application allows the Canadian authorities to take over assets linked to the QuadrigaCX case. The order will allow the forfeiture of $250,200 in cash, 45 gold bars, four luxury watches, and a number of pieces of expensive jewelry contained in a safety deposit box belonging to QuadrigaCX co-founder Patryn.
Government’s Commitment to Combat Crime
“Today, we have filed our third unexplained wealth order application with the British Columbia Supreme Court – a strong demonstration of our government’s commitment to take decisive action against criminals and organized crime,” said Mike Farnworth, Minister of Public Safety and Solicitor General for British Columbia, in a statement.
The QuadrigaCX case has been much publicized in recent years and was the subject of a popular 2022 Netflix documentary.
Recovery of Ill-Gotten Funds
“The international, criminal actions of Quadriga Coin Exchange (QuadrigaCX) led to thousands of people losing their life savings,” said Farnworth. He emphasized the importance of recovering ill-gotten funds and redirecting them to community benefits in a public way.
Proceeds Redirected to Victim Services
The Canadian official stressed that authorities will continue to take assets from unlawful activity and redirect proceeds made from crime to victim services programs and crime prevention initiatives, such as the anti-hate grants to communities announced on Feb. 15, 2024.
“Gold bars may be highly liquid and flashy luxury goods, such as jewelry and Rolex watches, attract attention, but they are also attracting the attention of police and our government. If they are the proceeds of criminal activity like fraud, drug trafficking, or money laundering, we will go after them,” said Farnworth.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
