Crypto transparency makes DeFi a financial felon’s wonderland. The Wonderland decentralized-finance project has been rocked by controversy. As a result of the revelation that it was being controlled in part by a felon. With ties to one of the most notorious bitcoin scams in history.
The value of tokens associated with the protocol that runs on numerous blockchains. Including Avalanche, has plummeted in the last 24 hours. Since its introduction in September, Avalanche has grown. To become one of the largest community-governed DeFi applications. With a market capitalization of over $1 billion. Daniele Sestagalli, a co-founder of Wonderland, said on Thursday that he had demanded. The resignation of the company’s treasurer. Who goes by the aliases Sifu and 0xSifu.
Following the disclosure of Sifu’s name, an anonymous Twitter user identified him as Michael Patryn. A co-founder of the defunct Canadian bitcoin exchange QuadrigaCX. Who had previously recognized as Sifu. Patryn did not respond to attempts to contact her for comment at the time of publishing.
Previously known by his given name Omar Dhanani before legally changing his name twice. Patricia Patryn served 18 months in federal prison in the United States. Before deported to Canada after pleading guilty in 2005 to charges including conspiracy. To commit credit and bank card fraud, burglary, grand larceny. And computer fraud among other things. Patricia Patryn was born in Canada and lived in the United States for most of his life.
Patryn was cleared of any culpability in Quadriga’s demise
The next year, he became acquainted with Quadriga’s co-founder Gerald Cotten. With whom he had a professional relationship until the two men split ways. In the spring of 2016. Patryn not charged with any crime in connection with the bankruptcy of Quadriga. Since Cotten’s death in 2018, the crypto world has riveted. By the revelation of a colossal fraud that resulted. In losses of at least C$169 million ($133 million) for 76,000 investors in Canada and worldwide.
A new illustration of how investors in unorganized and underregulated sectors of the cryptocurrency market. These are forced to deal with growing pains as the industry. Evolves is the recent disaster involving the exchange of bitcoin for bitcoin cash. It also portends additional troubles for the DeFi industry. Which operates mostly under the veil of anonymity while coming. Under increased scrutiny from regulators.
“It’s stunning,” said Aaron Lammer, a member of the DeFi team. At crypto prop trading platform Radkl and host of the podcast “Exit Scam.” About the Quadriga catastrophe, that Sestagalli was aware of Sifu’s identity. And did not change his course of action for crypto transparency.
According to Lammer, “this was news to me, but it was not news to him. And he chose to continue doing business with this guy.” Essentially, as the events of TIME unfolded. Dani was aware that the person in charge of the Treasury Department. Had previously convicted of financial crimes and sentenced to prison time.
After days of conjecture, Patryn’s identity was revealed for crypto transparency
Following days of discussion on Reddit by traders and cryptocurrency enthusiasts. A manhunt that coincided with significant liquidations of Wonderland’s TIME cryptocurrency. Resulted in the identification of Patryn as the person she claimed. To be after she identified as the person she claimed to be. In response to requests that he removed from the area. Sestagalli stated that he will defend his decision to associate. With Patryn before announcing his resignation from Wonderland a few hours later. In response to requests that he removed.
The allegations leveled against their team member @0xSifu brought. To the attention of Sestagalli on Thursday morning. And the company responded with a tweet sent shortly before 2 a.m. New York time. Stating also that they were aware of the speculation linking the pseudonymous Treasury head to Patryn. As well as the allegations leveled against the team member.