British Columbia Seizes $1M in Assets Linked to QuadrigaCX Co-Founder

TLDR

• BC authorities seized $1M in assets linked to QuadrigaCX co-founder Michael Patryn.
• The assets included gold, luxury watches, and over $250,000 in cash.
• Michael Patryn did not contest the seizure of his assets under an Unexplained Wealth Order.
• The assets may be used to compensate QuadrigaCX’s creditors, who received 13 cents on the dollar.

In a major legal action, British Columbia has seized more than $1 million in assets connected to Michael Patryn, the co-founder of the now-defunct cryptocurrency exchange QuadrigaCX. This move follows an Unexplained Wealth Order (UWO) issued by the province’s Supreme Court. The seized assets include 45 gold bars, multiple luxury watches, and approximately $250,000 in cash.

The seizure was a result of an investigation that identified the assets as being linked to misappropriated funds from QuadrigaCX customers. Authorities believe these assets were acquired with money that had been diverted from the exchange, which collapsed in 2019 following the death of CEO Gerald Cotten and the revelation of missing funds.

What Was Found in the Safety Deposit Box?

The majority of the seized assets were found in a CIBC safety deposit box located in Vancouver. Investigators recovered 45 gold bars, including three one-kilogram bars and 42 smaller ones, which are currently valued at over $800,000. Additionally, several luxury items were found, including Rolex and Chanel watches, jewelry, and a .45-caliber Ruger 1911 pistol.

While the police seized the items in 2021, it took until September 2025 for the Supreme Court of British Columbia to grant the forfeiture. This decision followed Patryn’s decision not to contest the seizure after initially challenging the case on constitutional grounds. The court’s ruling allows the assets to be liquidated, with the proceeds potentially being directed toward compensating QuadrigaCX’s creditors.

QuadrigaCX Collapse and Patryn’s Role

QuadrigaCX, once Canada’s largest cryptocurrency exchange, went into disarray in 2019 following the sudden death of CEO Gerald Cotten. It was later revealed that over $169 million in customer funds were missing, and the platform was found to have operated like a Ponzi scheme for several years. Patryn, whose real name is Michael Patryn, has long been suspected of playing a key role in the exchange’s operations, including the misappropriation of customer funds.

Patryn, who also went by the alias Omar Dhanani, has a criminal background. In 2005, he was convicted in the United States for operating an identity theft and money laundering service. He was later deported to Canada. Investigators have suggested that he was involved in the day-to-day operations of QuadrigaCX and benefited financially from its illicit activities.

Asset Forfeiture and Impact on Creditors

The asset seizure marks a critical point in the ongoing legal efforts surrounding the QuadrigaCX scandal. The $1 million in seized items could be used to help reimburse the exchange’s creditors. When bankruptcy proceedings concluded in 2023, creditors received only a fraction of their owed funds, with payouts amounting to just 13 cents on the dollar.

The next steps involve determining whether the liquidated assets can be allocated to creditors. Given the size of the amounts involved, the court’s decision to forfeit the assets is expected to play a significant role in the ongoing efforts to resolve the financial fallout of QuadrigaCX’s collapse.

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