QuadrigaCX exchange, after its CEO Gerald Cotton’s death is on the look-out in everyday news for the controversial updates. Recently, the exchange’s another co-founder, Michael Patryn came into the consideration who had left QuadrigaCX in 2016, referring some stipulated disagreement with Gerald Cotton.
According to Patryn, since 2016, he is not involved in QuadrigaCX operations by any means. In an email to Bloomberg, Patryn also stated that he and Gerald Cotton previously worked together in some non-profit organizations such as Vancouver’s Bitcoin Co-op, facilitating and educating users on crypto and blockchain topics to accelerate the adoption in the industry.
However, Patryn reportedly gripped in various other criminal activities in the past. On March 19, 2019, Bloomberg posted.
The Canadian largest Bitcoin exchange QuadrigaCX was founded in 2013, by CEO Gerald Cotton and co-founder Michael Patryn. However, after the surprising death of Cotton at the age of 30 from the trouble of Crohn’s disease in India, December 2018, approx.. 115,000 clients got suffered and worth C$260 million ($195 million) of their crypto assets were found to be missing from the exchange.
The controversial death of Cotton and missing of the funds from the exchange created chaos in the market and also shattered the investor’s trust. Due to this major loss, people are panicking and unable to trust the reliable cryptocurrency exchanges as it should be. As informed by Koinpost previously, the exchange is now consumed in the legal and financial proceedings over the missing funds and appointed Ernst & Young as its independent invigilating third-party authority to monitor its creditor protection case.
Amid the controversies and as per Bloomberg’s research, there is a new finding concerning QuadrigaCX exchange. Reportedly, QuadrigaCX, co-founder Michael Patryn was earlier known as Omar Dhanani, who had changed his name intentionally because of his prior involvement in several other criminal activities in the United States. However, Patryn rejected the allegations that he and Omar Dhanani are the same individuals. He invalidated all the truth related to his crafty acts which Bloomberg officially gathered from Canada about changing of his name twice in 2003 (Omar Patryn) and in 2008 (Michael Patryn).
According to local Canadian Newsprint Globe and Mail, Michael Patryn, and his partner, Lovie Horner, are the two largest shareholders in the QuadrigaCX exchange.
In 2005, U.S. Justice Department stated that, Dhanani, at the age of 22, was sentenced for 18 months in the U.S. federal prison due to his involvement in the identity theft which was related to both bank and credit card fraud while managing and operating shadowcrew.com, a defunct marketplace which hawked almost over 1.5 million stolen credit card and bank card numbers and did business.
According to California state court documents, in 2007, Dhanani was also convicted in separate criminal cases for burglary, grand larceny, and computer fraud.
Michael Patryn Reinvented His Identity
Bloomberg reports also mentions that Patryn was deported to Canada after his sentence got over in the US. In order to conceal his identity and to cover his transgression, he changed his originality with a new name “Michael Patryn” and shown himself as a Bitcoin entrepreneur, fintech advisor, and portfolio manager based out in Vietnam. His LinkedIn profile shows his stint of work into the Digital Currency, Blockchain, and AI focused technology through Vancouver-based Fintech Ventures Group which is defined by him as Canada’s first incubator for blockchain related startup companies, wherein he displayed himself as a founder and chairman, since 2015, and from 1999 to 2013, he has shown his work-experience related to digital currency.
Aftereffects of QuadrigaCX Scandal
No doubt the effects on the industry are massive after the sudden death of Gerald Cotton. The weird revelations also created uncertain waves of alarm all over the world. In order to control crime and further loss to the investors the Canadian Securities Commission is proposing a ban on cryptocurrency short selling and margin trading. On March 14th, 2019, the consultation paper has been issued by the Joint Canadian Securities Administration and Investment Industry Regulatory Organization of Canada as a strong step which can probably limit the possibilities of further misconduct by the operators of the digital currency businesses or crypto-asset trading platforms. The paper also suggested new framework concerning cryptocurrency custody solutions wherein all the crypto-asset trading platforms have to register themselves as an investment dealer along with this they are required to take the proper membership in the Investment Industry Regulatory Organization of Canada (IIROC). However, these measure steps are yet to be passed, but hard-hitting announcements are coming soon by the regulators.
There are various other facts and affairs related to QuadrigaCX indignity which are yet to be revealed. So, keep an eye out for further information and facts…