Max E.Fri, Jan 28, 2022 5:07 PM
The Dark Past Of The Co-founder Brought Down The Price Of TIME
The price of Wonderland (TIME), a relatively new decentralized finance (DeFi) project on Avalanche (AVAX), continues to fall. The price has already been down significantly this month, but today dropped almost 50% from $655 to $325,96.
One of the reasons for the decline is that one of the founders of the Wonderland protocol, under the nickname "Sifu", turned out to be a notorious serial scammer with several criminal convictions for financial crimes, and he was also QuadrigaCX's co-founder, Michael Patryn.
A certain 'Zach' found it out when he spoke to the founder of Wonderland, Daniele Sestagalli, about this.
QuadrigaCX went bankrupt in 2019 after its founder, Gerald Cotton (Cotten), died under mysterious circumstances, taking the keys to the company's wallets to the grave. Subsequently, QuadrigaCX was unable to pay back a whopping $190 million worth of crypto to customers.
It is still unclear exactly what happened then. Many people in the cryptocurrency industry still suspect that it was a so-called exit scam. Even Netflix is now making a movie about it.
Wonderland founder Daniele Sestagalli later confirmed in a tweet that he was aware of Sifu's identity and connection to QuadrigaCX. That may sound noble, but the Wonderland community, who call themselves 'Frogs', don't thank him for that. Patryn had a dark past even before his involvement with QuadrigaCX. He allegedly pleaded guilty in 2002 to a marketplace for stolen credit cards. In 2005 he pleaded guilty to bank fraud and in 2007 to theft and computer fraud.
The Wonderland team has confirmed that 0xSifu/Patryn will be stepping down as CFO and has also initiated a community vote on whether Patryn can stay with the team at all or leave the team for good.
The Wonderland TIME token has been hit hard by this scandal and is now 97% below its all-time high which was reached just 2 months ago. This high-profile scandal hit the faith of most investors in community-led DeFi protocols. Many investors began to withdraw funds from the protocols of these projects. This caused a significant outflow of liquidity, which could eventually lead to the de-pegging of the stablecoin, which significantly degrades the entire DeFi ecosystem.