DeFi tokens plummet by up to 50% after project manager's murky past revealed

Charlie Taylor

The revelation that the chief financial officer of the DeFi Wonderland project was Michael Patryn, who helped found QuadrigaCX — a Canadian brokerage that struck thousands of people — is causing at least five cryptocurrencies to collapse this Thursday (27). The worst performer of the day is TIME, the native […]

The post DeFi Tokens Drop by Up to 50% After Revealing Project Manager’s Dark Past appeared first on Bitcoin Portal.

The revelation that the chief financial officer of the DeFi Wonderland project was Michael Patryn, who helped found QuadrigaCX — a Canadian brokerage that struck thousands of people — is causing at least five cryptocurrencies to collapse this Thursday (27).

The worst performer of the day is TIME, the native token of Wonderland. Down by 55% in the last 24 hours, the coin is currently trading at the worst price in its history, around $286.

CoinGecko shows that the current price is as much as 96% lower than the all-time high of $10K that TIME reached in November last year.

In addition to TIME, the cryptocurrency price of other projects the entrepreneur was involved in also face a difficult time.

Popsicle Finance (ICE) is down 49% on the day, Wonderful Memories (wMEMO) is down 45%, and Spell Token (SPELL) is down just over 36%. The trio of tokens are from projects that had as one of their directors 0xSifu, a pseudonym that Patryn used to camouflage himself in the DeFi environment.

Even SushiSwap is taking the brunt of the scandal and is down 9% on Thursday — rumor has it that Patryn was tipped to be an advisor to the project.

SushiSwap, incidentally, is the latest member of Frog Nation, a collective of projects that claim to work together to drive the Defi industry forward. All the protocols mentioned above and that were related to Patryn, adding Abracadabra Money, are part of this group.

Community suspected of “soft rug”

The fall of cryptocurrencies does not seem to be caused only by the market's distrust about the seriousness of the projects that had an alleged scammer as one of their most important leaders.

Some investors suggest that they are being victims of a “soft rug” orchestrated by Patryn.

Twitter user @JozoJesko traced on the Ethereum blockchain that he started transferring a large amount of tokens to his personal wallet after his identity was revealed.

Jesko noted that the equivalent of $30.7 million worth of Magic Internet Money (MIM) — Abracadabra Money's dollar-pegged stablecoin — was transferred to Patryn's wallet this morning.

User @MidasTheFool, who helped unmask Patryn's identity this morning, claims the businessman is trying to cash out the cryptocurrencies.

“Currently [Patryn] is affiliated with Wonderland as CFO and in the multi-sig treasury of over 800 million. His wallet has expanded from 45 million to over 450 million and is currently funneling the funds out now that his real identity has been revealed,” he wrote.

The real identity of 0xSifu

The crypto community discovered this Thursday that 0xSifu is actually Michael Patryn, the entrepreneur who founded the QuadrigaCX exchange with Gerry Cotten, the company’s CEO.

In 2018, Cotten died suddenly during a trip to India. As the sole holder of the exchange’s private keys, all QuadrigaCX customers lost access to cryptocurrencies and lost around BRL 1.3 billion.

The businessman's death is fraught with mystery and in 2020, the exchange was deemed a Ponzi scheme by regulators the Ontario Securities Commission (OSC).

Initial reports from Twitter user zachxbt indicate that 0xSifu's real name is Michael Patryn, a businessman who served alongside Cotten in running QuadrigaCX.

In 2019, an article in The Globe and Mail had already confirmed that before changing his name to Michael Patryn, he was already called Omar Dahini and Omar Patryn, following two name changes in 2003 and 2008, respectively.

User @NourHaridy recalled yet other obscure details about Patryn's past:

“In 2005, he pleaded guilty to bank fraud. In 2007, he admitted theft, larceny and computer fraud. In 2018, he and his partner “lost access” to $115 million in client funds. I agree that prisoners deserve second chances, but this is NOT about being convicted.”

The post DeFi Tokens Drop by Up to 50% After Revealing Project Manager’s Dark Past appeared first on Bitcoin Portal.

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