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Canadian authorities question QuadrigaCX co-founder about source of funding

The action stems from the controversy surrounding the closure of cryptocurrency exchange QuadrigaCX in 2018, which left thousands of customers without access to their funds.

Date: 2024-03-28 Author: Łukasz Michałek
Canadian authorities question QuadrigaCX co-founder about source of funding

Canadian authorities have filed a third “unexplained asset order” application with the Supreme Court of British Columbia, asking QuadrigaCX co-founder Michael Patryn to explain how the assets were acquired.

QuadrigaCX declared bankruptcy in Canada in 2018 after its CEO Gerald Cotten died under mysterious circumstances in India, taking with him the only known private keys to the exchange’s portfolios. Although some of the funds owed to the exchange’s customers have been repaid, large sums are still missing.

This latest request for an unexplained asset warrant allows Canadian authorities to seize assets linked to the QuadrigaCX case.

“Today, we filed a third application for an unexplained asset warrant with the Supreme Court of British Columbia, a strong demonstration of our government’s commitment to taking strong action against criminals and organized crime,” said Mike Farnworth, Minister of Public Safety and Legal Counsel, in a statement.

The topic of QuadrigaCX has been widely covered in recent years, and was the subject of a popular Netflix documentary in 2022.

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Seized assets

The warrant will allow the forfeiture of $250,200 in cash, 45 gold bars, four luxury watches and a number of pieces of expensive jewelry located in a safe belonging to the QuadrigaCX co-founder.

“The international criminal activities of Quadriga Coin Exchange (QuadrigaCX) have led to the loss of thousands of people’s life savings,” Farnworth said.

“While the consequences of cryptocurrency theft, which leaves many victims, are timely, it is even more timely to recover these fraudulently obtained funds and publicly convert them into social benefits,” Farnworth said.

Proceeds of crime transferred to victims

The Canadian official then stressed that authorities will continue to confiscate property from illegal activities and redirect money from crime to much-needed victim assistance programs and crime prevention initiatives, such as grants awarded to anti-hate communities.

Gold bars, like jewelry and Rolex watches, attract not only eyeballs, but also the attention of the police and our government. Farnworth reassured by saying that if they come from criminal activities such as fraud, drug trafficking or money laundering, they will be allocated to the victims of those crimes.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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