On Thursday the 27th of January 2022, allegations surfaced suggesting that the treasurer at Wonderland (the DeFi protocol) was also the co-founder of QuadrigaCX (the now-invalid exchange).
It all started with a Twitter publication of private messages between DeFi investigator Zachxbt and Daniele Sesta (founder of Wonderland and Abracadabra). In this series of posts, Zachxbt seemingly revealed the true identity of QuadrigaCX co-founder as the Wonderland treasurer.
Michael Patryn who goes by the handle @ 0xSifu on Twitter is yet to give his response. Up until now, he had been quiet about any associations with QuadrigaCX. When the exchange collapsed under mysterious circumstances, it was alleged that its co-founder had squandered the funds. However, this individual had remained anonymous all these years.
Wonderland rattled after the Allegations
Following the allegations tying their treasurer to a failed exchange, the Wonderland community was understandably rattled. Daniel Sesta, the co-founder, tweeted about the case stating that he has no bias against Michael who is not just his friend but part of his family. He made it clear that he was not too concerned about how this would reflect on his own reputation.
On his blog, Sesta reveals that he only became aware of his friend’s career background about a month ago. Despite his discovery, he had allowed Michael to maintain his role because he believes in second chances. However, following the recent public outcry, Michael was forced to step down until a vote for his confirmation is in place. The community has the final say on its treasury.
Wonderland emerged in the crypto sphere back in September of 2020 as a fork of the Olympus DAO launching on the Avalanche network. The protocol has shown great performance since then but is yet to make any outstanding leaps in the market. Based on recent data, the protocol holds $360 million in total value locked (TVL). Its native asset, TIME is down almost 98% from its all-time-high just two months ago. Its founders have tried to counter this price drop by injecting millions of dollars into the project.
What happened to QuadrigaCX
Someone is probably reading this and wondering why it is such a big deal; so let’s get some perspective. As already mentioned, QuadrigaCX was a popular crypto exchange and its saga began with the untimely death of Gerald Cotton, one of its co-founders. In the days that followed, over $145 million of customers’ funds were reported missing. The team reported that they could not locate the encrypted passwords to the cold storage wallets.
A legal battle between over 20,000 clients and the team commenced in the years that followed. The story was so big that it caught the attention of production and streaming giant Netflix and they are working on a film dramatizing Cotton’s mysterious death and the financial fallouts that followed. Do you see how suspicious it is that Michael has stayed quiet all this year and is now working with another project? Who is to say that Wonderland is not headed in the same direction as QuadrigaCX?