Canada Targets QuadrigaCX Founder in $169M Crypto Case

British Columbia is seeking a court order to force Michael Patryn, co-founder of the collapsed Canadian crypto exchange QuadrigaCX, to reveal the source of his wealth. The order, known as an unexplained wealth order (UWO), is a new tool for Canadian authorities to fight against criminals and organized crime.

QuadrigaCX became infamous after its founder Gerald Cotten died unexpectedly on 9 December 2018, leaving investors with millions of dollars in losses. The exchange was later accused of fraud by the province.

According to the  Attorney General the case gained more exposure in February 2024.This was after it was highlighted in the “The Key to the Castle: Criminal Intent” episode of Law and Order Toronto. 

The authorities are now trying to recover assets from Patryn, which includes  $250,200 cash, 45 gold bars,4 luxury watches, and jewellery. 

“We will continue to take the assets from unlawful activity and redirect the proceeds of crime to much-needed victim services programs and crime prevention initiatives, such as the anti-hate grants to communities announced on Feb. 15, 2024.” Stated the attorney general 

A previous report of the year 2020 the Ontario Securities Commission cleared Patryn of wrongdoing, but British Columbia believes he and Cotten misappropriated client funds. Patryn’s lawyer will likely argue that he left QuadrigaCX in 2016 and was not involved in any fraudulent activities. 

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