There are strong indications that a Reddit account, who made quite a few posts about making a large number of BitMEX trades, might be co-founder of defunct Canadian cryptocurrency exchange – Michael Patryn. It should be recalled that on the 26th of January, QuadrigaCX shut down its activity without affording its clients any kind of egress.
About two months before it shut down, QuadrigaCX’s CEO and co-founder – Gerald Cotton, passed on very unexpectedly.
Following the shutdown, the Canadian company applied to the Nova Scotia Supreme Court for creditor protection seemingly because they had problems accessing “very significant cryptocurrency reserves held in cold wallets.”
Associating Michael Patryn with @MikeXBT
The Reddit account in question with the “MikeXBT” username made a number of posts. One of his posts was a message that seemed to prove speculations that he really was an investor with QuadrigaCX. The post, which came as a comment, said:
“We were invited. It was not mandatory. Most shareholders did not attend.”
Also, in another reply posted sometime in February, MikeXBT was referred to as “Mr Patryn” and he didn’t shut it down.
A few years earlier, specifically in April 2014, a list of applicants contending for seats on the Bitcoin Alliance Board was posted online. Michael Patryn’s name was posted along with the handle “@MikeXBT”. Last week, a report by Globe and Mail which held that Omar Dhanani is Michael Patryn’s real name was published. This story claimed that Patryn was a
“convicted felon who served time in the United States for his role in an online identity-theft ring.”
It was revealed that Mr Omar Dhanani, at the age of 20 in 2004, was apprehended by the United States Secret Service for running an “electronic money laundering service” anonymously. It was also revealed that in May 2007, he was convicted and sentenced to 18 months in a United States federal prison. Records have shown that Omar Dhanani was also known as Omar Patryn.
Patryn supposedly parted ways with QuadrigaCX after he disagreed with Gerald Cotton on whether or not the company should be taken public.
Details about MikeXBT’s Posts
If definitively proven, the association between Michael Patryn and the MikeXBT pseudonym might turn out to be challenging as MikeXBT made posts about buying into BitMEX in very big volumes. On Reddit, a few people have even insinuated that Patryn used some funds from QuadrigaCX for his trades.
One post from MikeXBT posted on the BitcoinMarkets thread in April of 2018, said:
“Closed my 47m long posted here from $6580, at an average of $6840. A gain of approximately 4%, plus earned a bit in maker fees and perpetual fundings.”
Also another post in September last year revealed that MikeXBT invested as much as $8million. The post read:
“Long $8 MM @$6646. 1x leverage, soft stops at 5%. I allowed part of my hedge short to expire during the September settlement on Mex, planning to reopen in $500k chunks as the price increases.”
There were also a few short positions confirmed by MikeXBT to have been taken. In April of 2018, he posted:
“Added $1MM to my $2M short @8722. Current position $3MM @ $8895. I’m still expecting substantial downward movement, but will consider this trade lost if we break the $9400 range with conviction.”
On Twitter, an ‘I am Nomad’ account also posted a list of investments that seem to have been transacted by a ‘Patryn’ on BitMEX.
If it is true that MikeXBT is really Michael Patryn, one might begin to wonder how exactly he is able to afford trades and transactions worth millions of dollars.