{"id":56693,"date":"2022-01-27T15:50:11","date_gmt":"2022-01-27T13:50:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=56693"},"modified":"2025-09-04T07:44:21","modified_gmt":"2025-09-04T04:44:21","slug":"community-accuses-wonderland-co-founder-of-involvement-with-quadrigacx","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/community-accuses-wonderland-co-founder-of-involvement-with-quadrigacx\/","title":{"rendered":"Community accuses Wonderland co-founder of involvement with QuadrigaCX"},"content":{"rendered":"<p>The Wonderland DeFi protocol co-founder going by the handle 0xSifu is Michael Patryn, co-founder of the failed Canadian cryptocurrency exchange QuadrigaCX, according to an on-chain detective using the alias zachxbt.eth.<\/p>\n<p>In confirmation, he published a correspondence with the project&#8217;s other co-founder, Daniele Sestagalli.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">1\/ This needs to be shared <a href=\\\"https:\/\/twitter.com\/0xSifu?ref_src=twsrc%5Etfw\\\">@0xSifu<\/a> 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<\/p>\n<p>I have confirmed this with Daniele over messages. <a href=\\\"https:\/\/t.co\/qSfWNnQPhr\\\">pic.twitter.com\/qSfWNnQPhr<\/a><\/p>\n<p>\u2014 zachxbt.eth (@zachxbt) <a href=\\\"https:\/\/twitter.com\/zachxbt\/status\/1486591682728673282?ref_src=twsrc%5Etfw\\\">January 27, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script> <\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>&#8220;This needs to be shared: 0xSifu is the co-founder of QuadrigaCX, Michael Patryn. If you don&#8217;t know, that is the Canadian exchange that collapsed in 2019 after the founder Gerald Cotten disappeared with $169m,&#8221; he wrote.<\/p>\n<\/blockquote>\n<p>Daniele Sestagalli initially did not directly confirm the investigator&#8217;s findings, but admitted that his partner in the past &#8220;made mistakes&#8221;.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>&#8220;I agree that former prisoners deserve a second chance, but it&#8217;s not about being convicted,&#8221; he stressed.<\/p>\n<\/blockquote>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">In 2005, he pled guilty to credit and bank fraud<\/p>\n<p>In 2007, he admitted burglary, theft and computer fraud<\/p>\n<p>In 2018, he and his partner \u201clost access\u201d to $115M in customer funds<\/p>\n<p>I agree that inmates deserve second chances but this is NOT about being convicted.<\/p>\n<p>\u2014 nour (@NourHaridy) <a href=\\\"https:\/\/twitter.com\/NourHaridy\/status\/1486603936152887298?ref_src=twsrc%5Etfw\\\">January 27, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>In response, one user reminded some details of Patryn&#8217;s biography.<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>2005 \u2014 pleaded guilty to credit and bank fraud;<\/li>\n<li>2007 \u2014 pleaded guilty to burglary, theft and computer fraud.<\/li>\n<\/ul>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>&#8220;I agree with the fact that former prisoners deserve a second chance, but it&#8217;s not about being convicted,&#8221; he stressed.<\/p>\n<\/blockquote>\n<p>Against a wave of outrage, Sestagalli admitted that he learned the identity of 0xSifu about a month ago, but left him in charge of the protocol&#8217;s treasury. He proposed that 0xSifu step down until approved by a community vote.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">My statement on Recent Developmens at Wonderland <a href=\\\"https:\/\/t.co\/Lq3TK4z1fI\\\">https:\/\/t.co\/Lq3TK4z1fI<\/a><\/p>\n<p>\u2014 Daniele never asks to DM (@danielesesta) <a href=\\\"https:\/\/twitter.com\/danielesesta\/status\/1486657816668651523?ref_src=twsrc%5Etfw\\\">January 27, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Sestagalli and 0xSifu founded Wonderland in September 2021 as a fork of the Olympus protocol on the Avalanche blockchain. The project aims to create a stablecoin backed by a pool of crypto assets.<\/p>\n<p>The native Wonderland token (TIME) after zachxbt.eth&#8217;s tweet fell from around $540 to a low of $343 \u2014 about 36% (CoinGecko). At the time of writing the price had rebounded to $380.<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh5.googleusercontent.com\/XZ4mzmhS4CB5peX1H8uJw_SGTzwD89mYmkd9EubCTRWS1zmST5zxwkiIkJe3-b3TAv0bLkFG8Yb3pLX3rFTCw8yywu6aX3NnEiSWYV_b2MwUzncM5C3Q-VDNyGGSvU5M3AZm1AWG\\\" alt=\\\"The community exposed Wonderland co-founder\u2019s involvement with QuadrigaCX\\\"\/><figcaption>Data: CoinGecko.<\/figcaption><\/figure>\n<p>Since the start of the year, the token&#8217;s price has fallen roughly 90%.<\/p>\n<p>Total value locked (TVL) in the protocol over the past week declined by more than 86%. The metric accelerated the fall, dropping 73% in the last hour alone.<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh3.googleusercontent.com\/_EgsdnfF2XPSfk6THAJ95_lulIxlW6SVwTDN4E2llNM6mUw-UB_Uz82RRvGexj2VMLTa8mQd4T6_Q7Q_toloYre11mgKyhEW6bkRghiO5klTSS8nfhv-KjnyRkeeovsUXZFzOBVG\\\" alt=\\\"The community exposed Wonderland co-founder\u2019s involvement with QuadrigaCX\\\"\/><figcaption>Data: <a href=\\\"https:\/\/defillama.com\/chain\/Avalanche\\\">DeFi Llama<\/a>.<\/figcaption><\/figure>\n<p>Alongside the teams of Abracadabra, Popsicle Finance, Wonderland, and, recently, SushiSwap, the Wonderland community is part of the decentralised organisation Frog Nation. 0xSifu holds the role of chief financial officer there.<\/p>\n<p>The TVL of the aforementioned projects has also declined noticeably.<\/p>\n<p>In 2021, Netflix announced plans to <a href=\"https:\/\/forklog.com\/en\/news\/netflix-to-make-documentary-about-quadrigacx-founder-gerry-cotten\">release a documentary film<\/a> about the death of QuadrigaCX founder and CEO Gerald Cotten.<\/p>\n<p>Follow ForkLog updates on <a href=\\\"https:\/\/twitter.com\/ForkLog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">Twitter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Wonderland DeFi protocol co-founder going by the handle 0xSifu is Michael Patryn, co-founder of the failed Canadian cryptocurrency exchange QuadrigaCX, according to an on-chain detective using the alias zachxbt.eth.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,1087],"class_list":["post-56693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-quadrigacx"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=56693"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56693\/revisions"}],"predecessor-version":[{"id":56694,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/56693\/revisions\/56694"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=56693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=56693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=56693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}