Canadian authorities have moved to seize assets related to the CEO of QuadrigaCX

The director of civil forfeiture in the Canadian province of British Columbia has issued an order to confiscate cash, 45 gold bars and luxury items in a safe deposit box linked to the co-founder of the QuadrigacyX cryptocurrency exchange.

An undisclosed wealth order is a type of court order that compels someone to disclose how they acquired their assets. State Public Safety Minister and Legal Counsel Mike Farnworth said in a statement:

“With this move, we are once again showing that criminals' assets are the proceeds of legitimate activities, not financial crimes. Quadriga Coin Exchange (Quadriga CX) international criminal activity has cost thousands of people their life savings.”

QuadrigaCX, once Canada's largest cryptocurrency exchange, went bankrupt in February 2019, shortly after co-founder Gerald Cotton died in India, taking QuadrigaCX's offline storage systems private keys to the grave.

According to documents filed with the Supreme Court of British Columbia, the assets were alleged to be the proceeds of criminal activity involving Michael Patrine, founder of the Quadriga Coin Exchange, and Gerald Cotton. The order facilitates holding a deposit box with an account at CIBC Bank.

Related: QuadrigaCX creditors set to accept 13% of their claims as ‘temporary profit'

Since 2006, civil litigation has existed in British Columbia, allowing the province to seize property without criminal charges.

Inside the safe was C$250,200 ($184,250) in cash, gold bars, two Rolex watches, a Chanel J12 black diamond watch and other jewelry.

Also in the box was a .45-caliber Rager 1911 pistol with ammunition and identification documents identified as Omar Danani and Omar Patrin, CBC reported.

The order alleges that Patryn played a significant role in QuadrigaCX's activities, including misappropriating customer funds and seizing its assets.

Following the collapse, the next step is to respond to Patron's liability for the asset.

After the collapse of QuadrigacyX, Patrin started a new career in decentralized finance, participating in protocols such as Wonderland and UwU Lend, using the name “Sifu”.

Michael Patrine was known as Omar Danani before changing his name twice in 2003 and 2008. He has been accused of various financial crimes in the US.

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