Canadian Province Wins Forfeiture of $1M QuadrigaCX Co-Founder’s Cash & Gold via Default Judgment

A $1 million haul of cash and gold tied to QuadrigaCX’s co-founder has been forfeited to the government of British Columbia, signaling the strongest test yet of the Province’s unexplained wealth order framework.

The Supreme Court of British Columbia granted the forfeiture after Michael Patryn did not contest the action, clearing the way for the Province to liquidate 45 gold bars, luxury watches, and more than $250,000 in cash seized during an earlier investigation, according to a Vancouver Sun report.

Court documents retrieved by CoinDesk show that in September 2025, the court granted the Province a civil forfeiture judgment vesting ownership of cash, gold bars, watches, and jewelry that were seized in March 2024 as part of an Unexplained Wealth Order – a tool being used by law enforcement in British Columbia to combat money laundering.

The Order argued that Patryn was heavily involved in all aspects of QuadrigaCX’s operations, including the misappropriation of customer funds and cryptocurrency, thereby justifying the seizure of goods. After the seizure, the next step was to compel Patryn to explain his wealth.

Patryn initially contested the action on constitutional grounds, CoinDesk previously reported, arguing that the investigation breached his Charter rights, but he did not appear to defend the case when the Province moved to seize the assets.

QuadrigaCX collapsed in 2019 after CEO Gerald Cotten died and customer funds were found to be missing. Later investigations described co-founder Patryn as deeply involved in the exchange’s operations during the period when misappropriations occurred.

The forfeiture now paves the way for a separate process to determine whether any of the recovered assets can be directed to Quadriga’s long-standing creditors.

QuadrigaCX’s bankruptcy concluded in May 2023, with claimants getting 13 cents on the dollar.