B.C. government flags cryptocurrency company with 3rd unexplained wealth order

The B.C. government has filed its third unexplained wealth order for money, gold bars and jewelry from a now-defunct cryptocurrency exchange company.

In a statement, Mike Farnworth, B.C.’s Minister of Public Safety and Solicitor General, said the application has been filed against Quadriga Coin Exchange (QuadrigaCX.).

“If successful, this application would see the forfeiture of $250,200 in cash, 45 gold bars, four luxury watches and a number of pieces of expensive jewelry,” Farnworth said.

“Through this action, we are demonstrating again that criminals will have to prove that their assets are the proceeds of lawful activity and not financial crime.”

In 2022, the company was the subject of a Netflix documentary called Trust No One: The Hunt for the Crypto King.

QuadrigaCX was founded by Gerald Cotten who died suddenly in 2018, taking the passwords to $250 million of investor’s money with him.

Now the company might lose its remaining assets unless they can prove where they came from.

2:04 Cryptocurrency founder transferred customers’ funds to his own accounts

“The international, criminal actions of Quadriga Coin Exchange (Quadriga CX) led to thousands of people losing their life savings. The fact that this organization has been the subject of a Netflix documentary related to a high-profile cryptocurrency fraud shows that these types of crimes do not show respect for borders,” Farnworth said.

“The Quadriga CX case was also profiled by Law and Order Toronto: Criminal Intent in a February 2024 episode, The Key to the Castle. While the fallout of cryptocurrency theft that leaves many victims in its wake is topical, what is even more timely is the recovery of these ill-gotten funds and converting them to community benefits in a public way.”

Farnworth said goods like gold bars and luxury goods attract the attention of police agencies and the B.C. government, and if they are found to be the proceeds of criminal activity, the government will go after them.

“We will continue to take the assets from unlawful activity and redirect the proceeds of crime to much-needed victim services programs and crime prevention initiatives, such as the anti-hate grants to communities announced on Feb. 15, 2024,” Farnworth added.