Michael Patryn
{{Short description|Canadian entrepreneur and felon}}
Michael Patryn (born Omar Dhanani) is an internet entrepreneur and convicted felon. He is best known for being the co-founder of Quadriga Fintech Solutions.{{Cite news |last=Castaldo |first=Joe |last2=Posadzki |first2=Alexandra |author-link2=Alexandra Posadzki |date=2019-02-28 |title=Quadriga co-founder served time in U.S. prison for role in identity-theft ring, documents reveal |url=https://www.theglobeandmail.com/business/article-quadriga-co-founder-served-time-in-us-for-role-in-identity-theft/ |access-date=2022-03-27 |work=The Globe and Mail |language=en-CA}}
{{Infobox person
| name = Michael Patryn
| other_names = Sifu, 0xSifu, Omar Patryn
| birth_name = Omar Dhanani
| nationality = Canadian
| criminal_charges = Conspiracy to commit credit card fraudhttps://www.justice.gov/archive/criminal/cybercrime/press-releases/2005/mantovaniPlea.htm
| criminal_penalty = 18 months
}}
History
In 2007 he admitted to conspiring in separate criminal cases for burglary, grand larceny, and computer fraud.{{Cite web |last=McNamara |first=Audrey |date=2019-03-19 |title=Quadriga Co-Founder Michael Patryn Tried to Bury His Criminal Past: Report |url=https://www.thedailybeast.com/quadriga-co-founder-michael-patryn-tried-to-bury-his-criminal-past-report |access-date=2022-04-06 |website=The Daily Beast |language=en}} He was arrested as a part of a sting operation on ShadowCrew by the Secret Service.{{Cite web |title=The Criminal Past of Quadriga's Co-Founder Has Been Revealed |url=https://finance.yahoo.com/news/criminal-past-quadriga-co-founder-201654641.html |access-date=2022-03-27 |website=finance.yahoo.com |language=en-US}} Patryn had not been using a proxy address; allowing authorities to identify him with the assistance of a confidential informant within the group.{{Cite news |last=Zetter |first=Kim |title=Guilty Pleas in ID Theft Bust |language=en-US |work=Wired |url=https://www.wired.com/2005/11/guilty-pleas-in-id-theft-bust/ |access-date=2022-03-27 |issn=1059-1028}}
After serving time in a U.S. prison, he was subsequently deported to Canada, where he changed his name twice, once to Omar Patryn, before changing it back to Michael Patryn.{{Cite web |title=Crypto Rocked Again: Wonderland CFO Is Ex-Convict Tied to Defunct Exchange |url=https://www.thestreet.com/investing/cryptocurrency/crypto-rocked-again-as-wonderland-cfo-turns-out-to-be-ex-felon |access-date=2022-04-06 |website=www.thestreet.com}}{{Cite web |title=Crypto Rocked Again: Wonderland CFO Is Ex-Convict Tied to Defunct Exchange {{!}} TheStreet |url=https://www.thestreet.com/.amp/investing/cryptocurrency/crypto-rocked-again-as-wonderland-cfo-turns-out-to-be-ex-felon |access-date=2022-03-27 |website=www.thestreet.com}} He publicly denied that the two identities are related, but an investigation by the Globe and Mail confirmed the name changes with the Canadian government.{{Cite news |last=Castaldo |first=Joe |last2=Posadzki |first2=Alexandra |author-link2=Alexandra Posadzki |date=2019-02-28 |title=Quadriga co-founder served time in U.S. prison for role in identity-theft ring, documents reveal |url=https://www.theglobeandmail.com/business/article-quadriga-co-founder-served-time-in-us-for-role-in-identity-theft/ |access-date=2022-03-27 |work=The Globe and Mail |language=en-CA}}
Quadriga Fintech Solutions
Patryn co-founded Quadriga Fintech Solutions, operator of the crypto exchange QuadrigaCX, with Gerald Cotten. He claims he left the company in 2016, before the company allegedly became a Ponzi scheme resulting in over $200 million in losses after Cotten died.{{Cite web |last=Alexander |first=Doug |date=March 19, 2019 |title=Criminal Past Haunts Surviving Founder of Troubled Crypto Exchange |url=https://www.bloomberg.com/news/articles/2019-03-19/from-fraud-to-fintech-quadriga-co-founder-s-past-crimes-emerge}}
The Ontario Securities Commission claimed they attempted to contact Patryn during their investigation, but he did not respond. They believe that the majority of the funds were deposited after his believed departure.{{Cite web |title=How We Conducted Our Review |url=https://www.osc.ca/quadrigacxreport/how-we-conducted-our-review.html |access-date=2022-03-27 |website=QuadrigaCX Report |language=en}}
Wonderland
In January 2022, Patryn was allegedly revealed to be 0xSifu, an anonymous individual who co-founded and was elected to manage the treasury at the DeFi cryptocurrency Wonderland,https://snapshot.org/#/bestfork.eth/proposal/0x8f974b76d4f50ea26a1f44843dcda2e0f6a4736883968b29996d272b86b447a9 one of the most popular projects in 2021.{{Cite news |last=Yaffe-Bellany |first=David |date=2022-03-02 |title=Millions for Crypto Start-Ups, No Real Names Necessary |language=en-US |work=The New York Times |url=https://www.nytimes.com/2022/03/02/technology/cryptocurrency-anonymity-alarm.html |access-date=2022-03-27 |issn=0362-4331}} When this happened, demands resulted in him resigning from the position as many erroneously assumed him to be Cotten when doxxed simply as "the quadriga guy".{{Cite web |last=Nicolle |first=Emily |date=January 27, 2022 |title=Crypto Secrecy Makes DeFi a Financial Felon's Wonderland |url=https://www.bloomberg.com/news/articles/2022-01-27/crypto-s-cloak-of-anonymity-makes-defi-a-wonderland-for-felon |access-date=2022-03-27 |website=www.bloomberg.com}} In February 2022, Wonderland asked him to return with an informal vote in favor. In September 2022, Wonderland voted to hire him as their Risk Officer in a vote which passed with ~90% approval. https://snapshot.org/#/bestfork.eth/proposal/0x83c00b74fd766a82802e5bca6a0e0499016a065d4c6ec455992deee139e25cd0
At its peak, Patryn oversaw over $1 billion in assets in the Wonderland treasury.{{Cite web |last=Carr |first=Earl |title=Wonderland Lost |url=https://www.forbes.com/sites/earlcarr/2022/02/15/wonderland-lost/ |access-date=2022-03-27 |website=Forbes |language=en}} The incident has led many to advocate for the de-anonymization of crypto.{{Cite news |last=Yaffe-Bellany |first=David |date=2022-03-02 |title=Millions for Crypto Start-Ups, No Real Names Necessary |language=en-US |work=The New York Times |url=https://www.nytimes.com/2022/03/02/technology/cryptocurrency-anonymity-alarm.html |access-date=2022-05-09 |issn=0362-4331}}