The director of civil forfeiture in British Columbia has initiated an unexplained wealth order to seize cash, gold bars, and luxury items discovered in a safe deposit box associated with a co-founder of the QuadrigaCX cryptocurrency exchange.
An unexplained wealth order, a court order compelling individuals to clarify the source of their assets, has been issued.
Minister Mike Farnworth emphasized the province’s commitment to holding criminals accountable for financial crimes, particularly those linked to QuadrigaCX’s collapse.
QuadrigaCX, Canada’s largest cryptocurrency exchange, collapsed in 2019 following the death of co-founder Gerald Cotten, who held access to offline storage systems.
Documents submitted to the British Columbia Supreme Court allege that the assets in question are tied to criminal activities involving co-founders Michael Patryn and Gerald Cotten.
The seizure from a CIBC Bank safe deposit box included $250,200 CAD in cash, gold bars, high-end watches, jewelry, a firearm, and identity documents.
The order suggests Patryn’s involvement in misappropriating customer funds and cryptocurrency, justifying the asset seizure.
Patryn, also known as Omar Dhanani, must now explain the origins of his wealth in response to the seizure.
Following QuadrigaCX’s collapse, Patryn has reportedly engaged in decentralized finance (DeFi) ventures under the alias “Sifu,” participating in protocols like Wonderland and UwU Lend.
Patryn, previously known as Omar Dhanani, has faced convictions for financial crimes in the United States, raising further scrutiny regarding his involvement in QuadrigaCX’s demise.
British Columbia’s pursuit of assets linked to QuadrigaCX underscores the province’s efforts to combat financial crime and protect investors. As the legal proceedings unfold, the case sheds light on the complexities and risks associated with the cryptocurrency industry.
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