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Breaking News: WLFI Price Dips 7% As Eric Trump Leaves World Liberty Treasury Company ALT5 Sigma

All Hell Breaks Loose, This Avalanche Project Main Dev Was Behind A Ponzi Scheme?

Reynaldo Marquez
Reynaldo Marquez
3 years ago
3 mins read
Avalanche

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The Avalanche community has seen its fair share of drama in the past days as Wonderland (TIME), a cross-chain dApp running on Ethereum, Fantom, and this network, hit a new price low. Data from CoinGecko indicates that the token has lost over 90% of its value since November 2021.

Related Reading | Hackers Are Now Using Compromised Cloud Accounts To Mine Crypto

The token was priced close to $10,000 and has been on a downtrend since that period reaching $406, as of press time. TIME has been one of the worst performers in the DeFi sector and could see further losses in the short term.

Wonderland Time Avalanche
TIME on a downtrend since November 2021. Source: Coingecko

According to a pseudonym investigator, Wonderland’s CFO known as OxSifu is the co-founder of QuadrigaCX, a former Canadian-based crypto exchange, Michael Patryn. This platform collapsed in 2019 shortly after its founder Gerald Cotten runaway with over $169 million.

Per a report published by the Ontario Securities Commission, QuadrigaCX was created from “fraud”. The crypto exchange and its founder promised their clients that their assets will be safe. However, the Canadian authorities discovered that “Cotten spent, traded, and used those assets at will”.

The pseudonym investigator decided to reveal the information related to Sifu due to TIME’s recent price action, and its implication for the inventors on the Avalanche project. He said the following via Twitter after sharing screenshots of a conversation with the founder of Wonderland, Daniele Sestagalli:

I never would have expected this but cannot sit on it any longer especially after the events experienced earlier this week with TIME.

In addition to the crypto exchange QuadrigaCX, Patryn was allegedly tied to an “identity theft ring” known as “Shadowcrew”. According to the investigator Patryn “plead guilty” to his ties with this illegal group.

In their report, the Canadian authorities are unable to establish a connection between Patryn and the fraudulent behavior displayed by its founder. The OSC claims Patryn was involved with the QuadrigaCX until 2016, after that:

Patryn ceased to be associated with Quadriga after 2016 and that the majority of client funds were deposited with Quadriga after Patryn’s departure. Based on the evidence we reviewed, Quadriga did not maintain proper accounting records from 2016 onward.

Avalanche Project CFO, An Old Time Fraudster?

Despite this report, Tay Vano CEO at crypto managing service MyCrypto shared the results of an investigation, conducted by independent reporter Amy Castor, that ties Patryn to the failed crypto exchange, and other Ponzi schemes. In 2019, according to images shared via her Twitter account, the Avalanche project CFO made ETH transactions that could directly link him to Quadriga.

Quadriga ties back to Sifu.eth https://t.co/Ugb1I5J6gw

— ZachXBT (@zachxbt) January 27, 2022

Patryn’s record of alleged fraudulent activities has been tracked back to Midas Gold, an exchange that operated between 2008 and 2013 until it was shut down, BlackHatWorld and TalkGold. The latter operated in 2003 as a forum to “push high yield investment programs” or Ponzi schemes.

Moreover, the same investigation suggests Michael Patryn changed his name from Omar Dhanani until he met Cotton. Patryn apparently was released from a U.S. federal prison back in 2007 after serving an 18-month sentence related to his involvement with “Shadowcrew”.

Related Reading | Crypto.com Restores Withdrawals After Reportedly Losing $15m To Hackers

Due to this long history of fraud, and illicit schemes involvement, some believe the founder of Wonderland has put his “reputation on the line”. Sestagalli shared a vote to remove Sifu/Patryn from his position as Wonderland’s treasury manager after sharing a long statement on recent events. Daniele said:

I found out about this 1 month ago, I am of the opinion of giving second chances (…). I have learned to give trust to people and to make my own opinions about them rather than just listen to the noise (…). I hope the community now comes together and decides what the future looks like and who they want managing their money.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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