B.C. files unexplained wealth order after seizing gold, cash and jewelry from crypto co-founder
The British Columbia government has filed an unexplained wealth order in an effort to seize a quarter-million dollars in cash, as well as 45 gold bars and luxury jewelry from the operator of a fraudulent cryptocurrency exchange company.
B.C. Supreme Court documents show the items were discovered in a safety deposit box belonging to Michael Patryn, one of the co-founders of the Vancouver-based Quadriga Coin Exchange.
Fellow founder Gerald Cotton, 30, died suddenly while travelling in India in 2018, leaving platform users and investors unable to access an estimated $215 million in cash and cryptocurrency assets.
The company sought creditor protection and was placed into bankruptcy in 2019.
An investigation by the Ontario Securities Commission found the company operated like a Ponzi scheme, and concluded in a 2020 report that what happened at Quadriga "was an old-fashioned fraud wrapped in modern technology."
Safety deposit box seized
In a statement Wednesday, B.C. Solicitor General Mike Farnworth announced that the province's civil forfeiture office had filed its third-ever unexplained wealth order, targeting Quadriga as a "demonstration of our government’s commitment to take decisive action against criminals and organized crime."
According to the notice of civil claim, Mounties seized the valuables from Patryn's safety deposit box located at a CIBC branch in downtown Vancouver in June 2021.
Inside the box, police found $250,200 in Canadian currency bound into five bundles held with elastic bands, gold bars from Canada and Australia, two Rolex Datejust watches, a Chanel J12 Black Diamond watch, a Baume & Mercier Men’s Classima Executive watch, as well as various pieces of jewelry, according to the claim.
A .45-calibre Ruger 1911 pistol, two magazines of ammunition and various pieces of identification under Patryn's name and his assumed names – Omar Dhanani and Omar Patryn – were also found, according to the claim.
Patryn responds to claim
Patryn was last known to be in Thailand and his occupation is not known, the claim states.
In his response to the claim filed last October, Patryn denies the items were the proceeds or instruments of unlawful activity.
He also alleges the police investigation "was conducted in such a manner" that breached his Charter rights.
Farnworth went on to note that thousands of people lost their life savings in the collapse of the Quadriga Coin Exchange.
"Gold bars may be highly liquid, and flashy luxury goods, such as jewelry and Rolex watches, attract attention, but they are also attracting the attention of police and our government," he said.
"If they are the proceeds of criminal activity like fraud, drug trafficking or money laundering, we will go after them."
It is estimated that more than 76,000 Quadriga clients – approximately 40 per cent of them in Ontario – were owed a combined $215 million when the company collapsed.
Ernst & Young, Quadriga's bankruptcy trustee, was only able to recover approximately $46 million in assets to pay out to clients.
The B.C. government filed its first unexplained wealth order late last year in an attempt to force a couple to explain how they purchased a $1.8-million property on Salt Spring Island in 2017.
With files from The Canadian Press
CTVNews.ca Top Stories
There's actually no such thing as vegetables. Here's why you should eat them anyway
The rumours are true: Vegetables aren't real — that is, in botany, anyway. While the term fruit is recognized botanically as anything that contains a seed or seeds, vegetable is actually a broad umbrella term.
BREAKING Israeli forces seize Rafah border crossing in Gaza, putting ceasefire talks on knife's edge
Israeli tanks seized control of Gaza’s vital Rafah border crossing on Tuesday as Israel brushed off urgent warnings from close allies and moved into the southern city even as ceasefire negotiations with Hamas remained on a knife’s edge.
The Met Gala was in full bloom with Zendaya, Jennifer Lopez, Mindy Kaling among the standout stars
The Met Gala and its fashionista A-listers on Monday included Jennifer Lopez, Zendaya and a parade of others in a swirl of flora and fauna looks on a green-tinged carpet lined by live foliage.
'It looked so legit': Ontario man books $7,700 luxury villa on Booking.com, but the listing was fake
An Ontario man says he was charged more than $7,700 to book a luxury villa on a popular travel website -- but the listing was fake.
Noelia Voigt resigns as Miss USA, citing her mental health
Noelia Voigt, who was crowned Miss USA in November 2023, has announced she is resigning from her role, saying the decision is in the best interest of her mental health.
Putin begins his fifth term as president, more in control of Russia than ever
Vladimir Putin began his fifth term Tuesday as Russian leader at a glittering Kremlin inauguration, setting out on another six years in office after destroying his political opponents, launching a devastating war in Ukraine and concentrating all power in his hands.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.