British Columbia Seizes Over $1M in Assets From QuadrigaCX Co-Founder Michael Patryn

Authorities seized over $1M in assets, including gold bars and luxury items, from QuadrigaCX co-founder Michael Patryn.

The seized assets are believed to have been purchased with misappropriated customer funds from QuadrigaCX.

Patryn’s criminal history resurfaces in the ongoing legal proceedings, with investigations into his role in the exchange’s collapse.

British Columbia has successfully seized over $1 million in assets connected to Michael Patryn, co-founder of the now-defunct QuadrigaCX cryptocurrency exchange. The seizure includes cash, gold, and luxury items found in a safety deposit box. Authorities claim the assets were obtained using misappropriated funds from QuadrigaCX customers.

According to a report by the VANCOUVER SUN, the Supreme Court of British Columbia granted a forfeiture order after Patryn failed to contest the action. This allows the province to liquidate the recovered assets, including 45 gold bars, luxury watches, and approximately $250,000 in cash. The seizure follows a lengthy RCMP investigation into Patryn’s financial activities.

Gold Bars, Rolexes, and a Loaded Pistol Seized

Police discovered the seized items in a safety deposit box at CIBC in Vancouver. Among the items were 45 gold bars, including three one-kilogram bars and 42 smaller bars. Officers also recovered luxury items, such as Rolex and Chanel watches, rings, jewelry, and even a Ruger .45-caliber pistol with loaded magazines.

The total value of the gold alone is estimated at over $800,000, based on current market prices. Authorities have accused Patryn of purchasing these assets using funds misappropriated from QuadrigaCX customers. Investigators believe these actions were part of a broader scheme to finance Patryn’s personal expenses.

In the court filings, officials stated that the assets found in the safety deposit box were tied to the operations of QuadrigaCX, which collapsed in 2019. The exchange had gained a reputation as Canada’s largest cryptocurrency platform before it shut down. Following the sudden death of CEO Gerald Cotten in India, it was revealed that over $169 million in customer funds had gone missing.

Patryn’s Criminal History and Past Convictions

Michael Patryn’s criminal past has resurfaced in the context of this asset seizure. Under the alias Omar Dhanani, he was convicted in 2005 in the United States for operating a money-laundering service. After serving his sentence, Patryn was deported to Canada, where he later co-founded QuadrigaCX with Cotten.

Patryn’s involvement in QuadrigaCX’s operations has long been under investigation. Authorities have suggested that he was a central figure in the misappropriation of funds from customers. Investigators have cited his criminal background in the filings related to the forfeiture proceedings. The assets recovered in the safety deposit box were part of a larger investigation that aimed to identify the source of Patryn’s wealth. While his whereabouts remain unknown, the civil forfeiture suit lists his last known location as Thailand

As authorities continue to probe Patryn’s financial dealings, questions remain about the extent of the recovered funds and their potential use in compensating QuadrigaCX creditors. The bankruptcy proceedings of QuadrigaCX resulted in creditors receiving merely a small portion of their investments in May 2023. Only 13 cents on the dollar had been paid to the claimants, which caused a lot of people to suffer huge financial losses. The loss of Patryn’s assets is a turning point in the process of resolving these claims.

Patryn Faces Further Legal Action

The forfeiture marks one of the first major applications of British Columbia’s Unexplained Wealth Order (UWO) regime. This legal framework allows the government to seize assets linked to unexplained wealth, particularly in cases involving organized crime or financial misconduct

Patryn’s failure to contest the forfeiture action helped the government move forward with the liquidation process. The assets that were confiscated in this case can now be evaluated to see if they are appropriate for compensating those who were affected by the failure of QuadrigaCX

The entire legal process is still ongoing, and the authorities are making efforts to solve the financial issues that have arisen due to the exchange’s downfall. There are still a lot of uncertainties regarding the extent of Patryn’s participation, but the confiscation of his assets is already an indication of his trial.