A $1 million cache of cash and gold associated with QuadrigaCX’s co-founder has been forfeited to the government of British Columbia, marking the most significant challenge to the Province’s unexplained wealth order framework to date.
The Supreme Court of British Columbia approved the forfeiture after Michael Patryn chose not to contest the action, allowing the Province to sell 45 gold bars, luxury watches, and over $250,000 in cash seized during a previous investigation, as reported by the Vancouver Sun.
Documents obtained by CoinDesk indicate that in September 2025, the court issued a civil forfeiture judgment granting ownership of the cash, gold bars, watches, and jewelry confiscated in March 2024 as part of an Unexplained Wealth Order—an instrument employed by law enforcement in British Columbia to fight money laundering.
The Order asserted that Patryn played a significant role in all facets of QuadrigaCX’s operations, including the mishandling of customer funds and cryptocurrency, thereby warranting the seizure of assets. Following the seizure, the next phase involved compelling Patryn to clarify his wealth.
Initially, Patryn contested the action on constitutional grounds, as CoinDesk previously reported, arguing that the investigation infringed upon his Charter rights, but he did not show up to defend against the case when the Province sought to seize the assets.
QuadrigaCX went bankrupt in 2019 after CEO Gerald Cotten passed away and it was discovered that customer funds were missing. Subsequent investigations identified co-founder Patryn as significantly involved in the exchange’s operations during the times when misappropriations took place.
The forfeiture now opens the door for a different process to ascertain whether any of the retrieved assets can be allocated to Quadriga’s long-standing creditors.
QuadrigaCX’s bankruptcy concluded in May 2023, with claimants receiving 13 cents on the dollar.
