A Canadian province has successfully obtained a default judgment allowing the forfeiture of assets belonging to QuadrigaCX co-founder Gerald Cotten, also known as Michael Patryn. The ruling transfers approximately $1 million in assets including cash, gold bars, watches, and jewelry that were seized from a CIBC safety deposit box and bank account into government possession. This action comes after Patryn failed to defend the case in court. QuadrigaCX collapsed in 2019 following the death of Cotten, leaving approximately $190 million in customer funds inaccessible. The exchange's downfall revealed significant mismanagement and potential fraud, with investigators discovering that Cotten had been using customer funds for personal expenses and trading on other exchanges. This asset forfeiture represents one of the few instances where authorities have been able to recover some value from the collapsed exchange. The case highlights ongoing challenges in cryptocurrency regulation and investor protection, particularly in cases where exchange operators misuse customer funds or engage in fraudulent activities.

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