Avalanche-based DeFi protocol Wonderland is hit by a scandal after an investigation revealed the popular project is run by the co-founder of the now-collapsed crypto exchange QuadrigaCX.
The controversy was revealed in a series of tweets by DeFi investigator @zachxbt, who has now disclosed the identity of the anonymous co-founder of QuadrigaCX, who went by the name Michael Patryn at the time. @zachxbt has revealed that ‘Michael Patryn’ is the co-founder ‘@0xSifu’ of Wonderland.
1/ This needs to be shared @0xSifu is the Co-founder of QuadrigaCX, Michael Patryn. If you are unfamiliar that is the Canadian exchange that collapsed in 2019 after the founder Gerald Cotten disappeared with $169m
I have confirmed this with Daniele over messages. pic.twitter.com/qSfWNnQPhr
— zachxbt.eth (@zachxbt) January 27, 2022
The now-defunct crypto exchange QuadrigaCX was riddled with controversy after the death of its co-founder Gerald Cotten, which was the only private key manager, in 2018 commenced a series of investigations that revealed that funds worth C$169 million ($133 million) of 76,000 investors were misplaced by the exchange.
An independent investigation by the Ontario Securities Commission (OSC) also revealed that the deceased CEO Gerald Cotten was cheating and spending investors’ money for personal uses as well. The case is still under legal proceedings.
At the moment, Wonderland has issued an official statement announcing that co-founder and chief financial officer ‘@0xSifu’/Michael Patryn has stepped down from his role at the protocol. A 48-hour open ballot on whether @0xSifu/ Michael Patryn is suitable for his role as Chief Financial Officer is currently underway.
The crypto sleuth @zachxbt revealed the Wonderland co-founder’s controversial past, which has been riddled with scams and frauds. Investigations revealed that in 2005, Michael Patryn pleaded guilty to credit and bank fraud and was sentenced to 18 months in prison. Later in 2007, he admitted to burglary, theft, and computer fraud.
The other co-founder of Wonderland Daniele Sestagalli said on Twitter that he had known @0xSifu’s past for about a month but decided “that the past of an individual doesn’t determine their future.”
1/ Today allegations about our team member @0xSifu will circulate. 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.
— Daniele never asks to DM (@danielesesta) January 27, 2022
Since the revelation, Wonderland’s native token TIME fell to its All-Time Low of $260 on Thursday. It briefly recovered to $440 before falling to current prices of $336.29.