$1 million in cash and gold linked to the co-founder of QuadrigaCX has been forfeited to the British Columbia government, signaling the toughest test yet of the province’s unexplained wealth order framework.
The British Columbia Supreme Court granted the forfeiture after Michael Patryn pleaded no contest to 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 issued a civil forfeiture judgment to the province granting ownership of cash, gold bars, watches and jewelry seized in March 2024 as part of an unexplained wealth order – a tool used by British Columbia law enforcement 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 cryptocurrencies, thereby justifying the seizure of goods. After the seizure, the next step was to force Patryn to explain her wealth.
Patryn initially challenged the action on constitutional grounds, CoinDesk reported, arguing that the investigation violated his Charter rights, but he did not appear to make his case when the province moved to seize the assets.
QuadrigaCX collapsed in 2019 after the death of CEO Gerald Cotten and the disappearance of customer funds. Subsequent investigations described co-founder Patryn as being deeply involved in the exchange’s operations during the period in which embezzlements took place.
The forfeiture now sets the stage for a separate process to determine whether any of the recovered assets can be directed to Quadriga’s longtime creditors.
QuadrigaCX’s bankruptcy concluded in May 2023, with plaintiffs receiving 13 cents on the dollar.
