Canadian authorities are seeking a court order to compel Michael Patryn, co-founder of QuadrigaCX, to account for his possession of 45 gold bars, a diamond-encrusted Rolex watch, and over $250,000 in cash. The Director of Civil Forfeiture in British Columbia has initiated legal action to demand explanations regarding these assets, which were confiscated in June 2021, following the collapse of Quadriga two years earlier.

An investigation in 2020 determined that the exchange's downfall in 2019 was a result of fraudulent actions by the other founder, Gerry Cotten, who passed away under mysterious circumstances during his honeymoon in 2018. While it was revealed that Patryn had distanced himself from QuadrigaCX after 2016, prior to the bulk of the fraudulent activities, recent evidence from chat records dating back to 2014 and 2015 suggests discussions between the founders on misappropriating customer funds to create the illusion of Patryn's departure from the company.

In a prior legal submission, Patryn's defense team asserted that the seized assets were unrelated to any illicit conduct. The upcoming court hearing scheduled for April 30 will address the new application. Should Patryn fail to provide a satisfactory account of how he acquired the cash and valuables, British Columbia's solicitor general, Mike Farnworth, has indicated that forfeiture of these items may be enforced, with the proceeds potentially benefiting victims of crime and supporting crime prevention initiatives.