Crypto Co-Founder Revealed To Be Infamous Fraudster, Investors Shaken
An anonymous reader quotes a report from Motherboard: Investors are shaken after the co-founder of a multi-billion dollar cryptocurrency protocol was accused of being a serial scammer with a record of conviction and deportation, and the co-founder of a fraudulent Canadian exchange that imploded. On Thursday, a Twitter user who goes by zachxbt.eth "with a track record of unmasking crypto scams and nefarious behavior," according to CoinDesk, accused "Sifu," a core member of the founding team behind the popular Avalanche-based Wonderland DeFi (or decentralized finance) protocol and its TIME token, of actually being Michael Patryn. Patryn, who changed his legal name twice, was the co-founder of QuadrigaCX, a Canadian exchange that shut down after Patryn's partner Gerald Cotten suddenly died in India in 2018 while owing users around $190 million in crypto at the time's exchange rate. Patryn and Cotten reportedly parted ways in 2016. Later, investigators determined that Cotten was operating QuadrigaCX as a Ponzi scheme near the end of its life. Patryn has been convicted of several crimes, including computer fraud and bank and credit fraud, as Bloomberg reported in 2019. After the original tweets that revealed Sifu is Patryn, Daniele Sestagalli, the founder of Wonderland, confirmed the allegation. Sestagalli is a prolific developer who is behind multiple DeFi projects, including Abracadabra's Magic Internet Money (MIM) token. "I want everyone to know that I was aware of this and decided that the past of an individual doesn't determine their future. I choose to value the time we spent together without knowing his past more than anything," Sestagalli wrote on Twitter. He later posted a statement explaining that he found out about Sifu's real identity a month ago, and has now decided to ask Patryn to step down. "I am of the opinion of giving second chances, as I have mentioned on Twitter. I've seen the community very divided about my choice of maintaining him as the treasury manager after finding out who he was and his past," Sestagali wrote. "Regardless, what has happened has happened. Now having taken some time to reflect, I have decided that he needs to step down till a vote for his confirmation is in place. Wonderland has the say to who manages its treasury not me or the rest of the wonderland team."
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