British Columbia Takes Legal Action Against Quadriga Cryptocurrency Co-Founder
The province of British Columbia has recently filed an Unexplained Wealth Order (UWO) against the co-founder of Quadriga, a now-defunct cryptocurrency exchange. The order, which was filed in the Supreme Court of British Columbia, aims to uncover the source of the co-founder’s wealth and assets.
Quadriga was once Canada’s largest cryptocurrency exchange, but it collapsed in 2019 after the sudden death of its co-founder, Gerald Cotten. Cotten’s death left thousands of investors unable to access their funds, resulting in losses of over $200 million.
The UWO, which was introduced in British Columbia in 2019, allows authorities to investigate individuals who are suspected of acquiring wealth through illegal means. It requires the individual to provide evidence of the source of their wealth and assets, and failure to do so can result in the seizure of those assets.
The co-founder in question, Michael Patryn, has been accused of being involved in fraudulent activities related to Quadriga. He has also been linked to a criminal organization and has a history of using aliases and false identities. These allegations have raised suspicions about the source of his wealth and assets.
The UWO filed against Patryn is the first of its kind in Canada’s cryptocurrency industry. It is a significant step towards regulating the industry and holding individuals accountable for their actions. The British Columbia Securities Commission (BCSC) has also launched an investigation into Quadriga and its co-founders, with a focus on potential securities law violations.
The BCSC has stated that the UWO is an important tool in their efforts to protect investors and maintain the integrity of the province’s capital markets. It allows them to gather information and evidence that may not be readily available through traditional means.
The UWO against Patryn is just one of the legal actions being taken against Quadriga and its co-founders. The company’s other co-founder, Gerald Cotten, is also facing a class-action lawsuit from investors who lost their funds. The lawsuit alleges that Cotten misappropriated investor funds for personal use and created fake accounts to inflate the company’s revenue.
The collapse of Quadriga has highlighted the need for stricter regulations in the cryptocurrency industry. The lack of oversight and accountability has made it easier for individuals to engage in fraudulent activities, resulting in significant losses for investors.
The UWO against Patryn is a step towards addressing these issues and protecting investors. It sends a strong message that individuals involved in fraudulent activities will be held accountable for their actions. The BCSC’s investigation into Quadriga and its co-founders is also a crucial step in uncovering the truth behind the company’s collapse and providing justice for the affected investors.
In conclusion, the Unexplained Wealth Order filed against Quadriga’s co-founder is a significant development in the legal actions being taken against the company and its co-founders. It is a step towards regulating the cryptocurrency industry and holding individuals accountable for their actions. The outcome of this case will have a significant impact on the future of the industry and the protection of investors.
