QuadrigaCX founder could be forced to explain where he got his Rolex

Canadian authorities are petitioning courts to force QuadrigaCX co-founder Michael Patryn to explain how he came to be in possession of 45 gold bars, a diamond-studded Rolex watch, and more than $250,000 in cash.

As reported by Bloomberg, the Director of Civil Forfeiture in British Columbia has asked for a court order that would force Patryn to explain the assets which were seized in June 2021 two years after Quadriga’s collapse.

A 2020 investigation concluded that the exchange’s 2019 implosion was caused by fraudulent activity committed by the exchange’s other founder, Gerry Cotten. Cotten died in mysterious circumstances while on his honeymoon in 2018.

The probe also found that Patryn cut ties with QuadrigaCX after 2016 before the majority of the fraudulent activity took place. However, according to the most recent filing, chat records from 2014 and 2015 appear to show the founders discussing how they could appropriate customer funds and make it look as though Patryn had left the company.

In a previous filing, Patryn’s legal team claimed that the seized assets had no connection to any illegal activity. The latest application will be heard by a judge on April 30.

According to British Columbia’s solicitor general Mike Farnworth, if Patryn cannot or will not adequately explain how he came to own the cash and jewelry, he may be forced to forfeit them and see them donated to victims of crime and crime prevention services.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.