Canadian authorities in British Columbia are pursuing the financial holdings of Michael Patryn, co-founder of the defunct crypto exchange QuadrigaCX. The Vancouver Sun has reported that officials are examining Patryn’s assets, which include cash, gold, and luxury items, suspecting they were obtained through illicit activities. An unexplained wealth order has been issued, compelling Patryn to justify the origins of his assets in a move to expose potential corruption.
Intensified Measures Against Illicit Finance
In response to money laundering concerns, the province adopted unexplained wealth orders last year, joining jurisdictions like England, New Zealand, and Ireland in using this tool to deter financial crimes. These orders enable authorities to investigate assets that appear disproportionate to known legitimate income sources.
Despite Patryn’s denial of any wrongdoing, officials are focusing on his valuable possessions, linking them to the QuadrigaCX scandal. The assets in question include monetary holdings, gold reserves, and various high-value personal items.
Mysterious Death of QuadrigaCX CEO Entwined with Fraud Allegations
The crypto community was rocked by the death of QuadrigaCX’s CEO, Gerald Cotten, in India in 2018. What followed was a series of revelations, with Ernst & Young uncovering improper financial transfers by Cotten from clients to personal accounts. Speculations about the authenticity of Cotten’s death certificate have also surfaced, given Rajasthan’s notoriety for issuing fraudulent documents. The controversy further escalated with the release of a Netflix documentary delving into the enigmatic circumstances of Cotten’s demise.
In light of the ongoing intrigue, Ernst & Young has undertaken the interim distribution of funds to some former users of QuadrigaCX, keeping the saga in the spotlight even five years after the exchange’s collapse.