The Government of British Columbia has seized $1 million of assets from the co-founder of
QuadrigaCX, a cryptocurrency exchange that collapsed in 2019.
The Supreme Court of British Columbia has ruled that the provincial government can take the assets of Michael Patryn, a co-founder of QuadrigaCX following the company’s implosion.
The forfeiture reportedly includes 45 gold bars, luxury watches, and more than $250,000 in cash that was taken by the government during an investigation into the crypto exchange’s failure.
The Government of British Columbia is seizing the assets under its anti-money laundering laws.
Government officials argue that Patryn was heavily involved in all aspects of QuadrigaCX’s operations, including the misappropriation of customer funds and cryptocurrency.
Patryn had contested the seizure on constitutional grounds, claiming it violated his Charter rights. But the B.C. Supreme Court has ruled against him.
QuadrigaCX failed in 2019 after its CEO Gerald Cotten died and customer funds were found to be missing.
Subsequent investigations concluded that Patryn was involved in the exchange’s operations during the period when misappropriations took place.
QuadrigaCX's bankruptcy procedure ended in 2023 with claimants getting $0.13 on the dollar.
The government seizure of Patryn’s assets now clears the way for a separate process to determine whether any of the recovered items can be directed to Quadriga’s creditors.
