QuadrigaCX co-founder Michael Patryn, known as “Sifu” in the DeFi community, has become the target of a new type of court order in British Columbia forcing him to explain how he acquired assets.
“Today we filed our third application for an unexplained property order with the Supreme Court of British Columbia,” said Public Safety Minister Mike Farnworth in a statement. “It is a strong demonstration of our government’s will,” he said. .
QuadrigaCX is a now-defunct cryptocurrency exchange that went bankrupt in 2019 following the disappearance and apparent death of CEO Gerald Cotten.
“Thousands of people have lost their life savings due to the transnational criminal activities of Quadriga Coin Exchange (Quadriga CX),” Farnworth explained.
If the application is successful, $250,200 in cash, 45 gold bars, four luxury watches and various expensive jewelery will be forfeited.
“Gold bullion is highly liquid and can be a flashy luxury item like jewelery or a Rolex watch, but it also attracts the attention of police and governments,” Farnworth added. “If it’s the proceeds of criminal activity, we’ll go after fraud, drug trafficking, money laundering, etc.”
There are also allegations that Patryn was heavily involved in the misappropriation of customer funds and cryptocurrency, but Patryn’s lawyers argue the investigation is unconstitutional.
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