The co-founder of the collapsed QuadrigaCX was obliged to provide information about assets

The Supreme Court of British Columbia (Canada) demanded that the co-founder of the closed crypto exchange QuadrigaCX, Michael Patrin, explain the origin of his personal assets, including luxury goods. 

“The international criminal activities of the Quadriga Coin Exchange (QuadrigaCX) have resulted in thousands of people losing their savings,” said the Minister of Public Security and General Director of the Lawyers of the Supreme Courts class ="old_tooltip">Solicitor of Canada Mike Farnworth.

QuadrigaCX closed in 2019 after the death of CEO Gerald Cotten.

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The prosecution alleges that Patrin, known under the pseudonym 0xsifu, was actively involved in the misappropriation of client funds and corporate cryptocurrency reserves. 

A warrant of unexplained enrichment has been issued against the suspect by the British Columbia Civil Forfeiture Office.

If the co-founder of the exchange cannot prove the legal origin of his funds, then the authorities will seize $250,200 in cash, 45 gold bars, four luxury watches and other jewelry.

“Gold bars are very liquid, and luxury items like jewelry and Rolex watches attract attention. But they also attract the attention of the police and our government. […] Suspects will have to prove that their assets are proceeds from legitimate activities and not from financial crimes,” Farnworth added. 

In January 2022, the Wonderland community discovered that Patrin was the co-founder of the project under the pseudonym 0xsifu. He is considered involved in the collapse of QuadrigaCX, as a result of which users lost about $137 million. 

Recall that in May, PeckShield analysts found that Patrin took advantage of the fall in the algorithmic stablecoin TerraUSD and earned ~$760,000. The co-founder of the exchange also stated that in two years he earned over $80 million from trading and investing.

Later that year, the co-founder of the collapsed exchange launched the DeFi protocol UwU Lend.