Michael Patryn, co-founder of the failed Canadian cryptocurrency exchange QuadrigaCX, has been identified by Bloomberg as convicted criminal Omar Dhanani, who previously served 18 months in a U.S. federal prison for identity theft and credit card fraud. Dhanani changed his name twice — first in 2003 and again in 2008 — to escape his past and eventually entered the crypto space.
A Criminal Past Hidden Behind Multiple Names
According to court records obtained by Bloomberg, Dhanani pleaded guilty in 2005 to conspiracy to commit credit and bank card fraud at the age of 22. He operated a website called Shadowcrew.com, which trafficked over 1.5 million stolen credit and bank card numbers. In 2007, he confessed to additional unrelated crimes including burglary, grand larceny, and computer fraud. After serving 18 months in federal prison, he was deported to Canada.
Once back in Canada, Dhanani legally changed his name to Omar Patryn in 2003, and later to Michael Patryn in 2008. He then co-founded QuadrigaCX with the late Gerald Cotten in 2013. Patryn claimed he left the exchange in 2016 due to disagreements over the company's plans to go public, stating in an email to Bloomberg: “On the day of our disagreement, I left the company and ceased being privy to operational decisions. Since that time, I have not been involved in the operations or management of any of the Quadriga companies.”
The QuadrigaCX Collapse and Its Aftermath
QuadrigaCX abruptly shut down in January 2019, leaving over 115,000 customers unable to access approximately $190 million in cryptocurrency. The exchange's cold wallets were found to have been empty long before Cotten's unexpected death during a trip to India. Cotten's widow claimed he had been funding user withdrawals from his personal accounts after the exchange's banking issues arose.
Since February 5, the company has been under court-approved creditor protection, with Ernst & Young acting as monitor. Investigations revealed that six of Quadriga's cold wallets had no funds for an extended period prior to Cotten's death, raising serious questions about the exchange's solvency and management practices.
Attempts to Erase Digital Footprints
Bloomberg reported that Patryn has been actively trying to hide his criminal history, hiring a firm to purge negative online content about him. In a February article by the Globe and Mail, Patryn denied being Omar Dhanani and distanced himself from his alleged criminal record. He now resides in Vietnam and describes himself as a “fintech advisor and portfolio manager,” while also serving as founder and chairman of Canadian blockchain incubator Ventures Group (FVG).
The QuadrigaCX saga remains one of the most stunning failures in cryptocurrency history, highlighting the importance of transparency and regulatory oversight. As investigators continue to unravel the exchange's operations, the involvement of a convicted fraudster adds yet another layer of intrigue to this dark chapter in crypto.