Canadian Authorities Seize Assets Linked to QuadrigaCX CEO

The director of civil forfeiture in British Columbia, Canada, has issued an unexplained wealth order to confiscate assets from a safe deposit box linked to a co-founder of the QuadrigaCX cryptocurrency exchange. This type of court order compels the individual to explain how they acquired their assets. The Canadian province aims to demonstrate that criminals must prove their assets are not the proceeds of financial crime. QuadrigaCX, which was once the largest crypto exchange in Canada, became insolvent after its co-founder died, taking the private keys to the exchange’s offline storage with him. The assets seized are believed to be linked to QuadrigaCX co-founder Michael Patryn and Gerald Cotten.

The order enabled the seizure of a safe deposit box at CIBC Bank, which contained cash, gold bars, luxury watches, and other jewelry items. The box also held a firearm and identity documents under different names. The order alleges that Patryn was involved in misappropriating customer funds and cryptocurrency through QuadrigaCX, justifying the asset seizure. Patryn, using the alias “Sifu,” has since moved on to decentralized finance (DeFi) ventures following QuadrigaCX’s collapse.

The next step in the process is to prompt a response from Patryn to account for his wealth. This action underscores British Columbia’s legislation allowing the province to seize property without criminal charges through civil forfeiture, which has been in place since 2006. In this case, officials seek to hold Patryn accountable for his alleged involvement in criminal activities associated with QuadrigaCX. Patryn has a history of financial convictions in the United States and has undergone two name changes, previously known as Omar Dhanani.

The civil forfeiture director’s move showcases the province’s determination to combat financial crime and send a message that criminals will face consequences. The QuadrigaCX collapse led to many individuals losing their life savings, highlighting the devastating impact of such incidents. With this action, British Columbia reinforces its commitment to pursuing justice and holding individuals accountable for their roles in illicit activities. The assets seized from the safe deposit box serve as evidence of the potential proceeds linked to criminal actions involving the co-founders of QuadrigaCX.

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