The CFO of Wonderland is revealed to be a serial scammer convicted previously. The news has shaken up the crypto investors, due to which the project is facing a major liquidation cascade. At present, the multi-billion DeFi protocol, wonderland.money (TIME), plunged around 40% in 24 hours with its price falling from $10,000 to $500.
TIME has slipped 95% below from its all-time high. As soon as the news broke out, its liquidations showed a spike that pulled TIME below its intrinsic value. Owing to the low records of the native token, experts predict that the company will have a tough week.
The exposed manager will be renouncing his position as the treasury manager of wonderland.money.
Reportedly, he was involved in several crimes, including burglary, grand theft, and computer fraud, in 2007. After spending three years in prison, Patryn was deported to Canada, where he changed his name twice before venturing into cryptocurrencies.
The fraudster Michael Patryn was also the co-founder of Defunct Canadian crypto exchange QuadrigaCX. In 2019, Patryn withdrew his partnership from the company when the co-founders decided to take the company public.
When the crypto crashed, QuadrigaCX failed to cover the demand for liquidations. Consequently, it began operating as a simple Ponzi scheme. The situation inflamed with the revelation that Cotten was using the users’ investment to gamble. It led to $115 million being associated with fraudulent trading by Cotten.
Additionally, Cotten was seen involved in illicit use of crypto on third-party crypto platforms. From the total loss, $46 million was retrieved.
Built on Avalanche blockchain network, wonderland.money company is a decentralized reserve currency protocol. Sestagali and Patryn (famously OxSifu) came together to build and launch the platform in late 2021.
Sestagalli confirmed the allegations through his tweet; however, the opinion on OxSifu’s identity remained vague. A statement was released where the co-founder announced the stepping down of Patryn. Notwithstanding, the vote of his reinstatement is yet to be out.
2/ Many people in the world are judged by their early mistakes, this comes prevalent into the life of ex inmates that can’t get access to financial services after being felons.
— Daniele never asks to DM (@danielesesta) January 27, 2022
Despite the allegations, Sestagalli showed his support to the co-founder through his recent tweet. “I want everyone to know that I was aware of this and decided that the past of an individual doesn’t determine their future. I choose to value the time we spent together without knowing his past more than anything.,” he said.
VoskCoin, the popular crypto youtube channel, commented on the issue, tweeting, “You better bail out of MIM and Wonderland TIME asap along with any other trash associated with sifu and those scammers and yeah this is financial advice.” Currently, the investigators are mining the accounts linked with Patryn.