DeFi project Wonderland to shut down after associations with “Ponzi scheme” QuadrigaCX revealed

Key Wonderland Takeaways:

• Wonderland voted to wind down the project.
• The project came under fire after the revelation that 0xSifu was the cofounder of failed Canadian crypto exchange QuadrigaCX

NEW DELHI (CoinChapter.com) — Wonderland will be no more.

The Avalanche-backed decentralized finance (DeFi) project landed itself in controversy after one of its founders — and also the chief financial officer (CFO), Michael Patryn, was found to be associated with a yesteryear exit scam, QuadrigaCX.

According to an investigation conducted by an on-chain analyst, known by the pseudonym of zachxbt.eth, Patryn’s pseudonymous profile, 0xSifu, had also served as QuadrigaCX’s co-founder and CFO.

That prompted Wonderland’s other founder, Daniele Sestagalli, to call for a community vote, asking whether they should continue operating their decentralized reserve currency protocol. The response came divided, prompting Setagalli to tweet that they “failed.”

But the good cop announced that they would “find a new home” for people who voted in favor of keeping Wonderland alive. Notably, the voting round called to decide whether or not to wind down the DeFi protocol and return the treasury to its holders received 55.11% votes in favor of saving the project.

Mr. Sestagalli revealed he did not agree about continuing the experiment. Instead, he is working with his team on a new proposal. After a discussion with the community on Discord, the ‘Frog Nation’ CSO shared he will try to find his supporters a more forward-looking solution.

Also Read: Terra(LUNA) down 15% after Wonderland controversy reveal.

Frog Nation refers to a community of users of the various DeFi projects built by Mr. Sestagalli.

Mr. Sestagalli further stated he believed it to be the duty of his team to enact the will of the token holders. He further stated said the way forward would be to reimburse those who do not feel like being a part of the project.

WTF was QuadrigaCX?

In detail, QuadrigaCX was the largest crypto exchange in Canada until the death of co-founder Gerald Cotten revealed a financial anomaly of $215 million. Furthermore, the report unveiled Cotten fabricated $115 million worth of trading volume on the exchange.

A report by the Ontario Securities Commission labeled the exchange a “Ponzi Scheme.”

Additionally, as per reports, before changing his name to Michael Patryn, 0xSifu had changed his name twice already. His other aliases include Omar Dahini, then Omar Patryn, after two name changes in 2003 and 2008, respectively.

Moreover, Patryn is a convicted financial criminal who spent time in jail. He also pled guilty to conspiracy to commit credit and bank card fraud in 2005. Additionally, he was convicted for burglary, grand theft, and computer fraud in 2007.

Also Read: DeFi 3.0 Alliance claims to be the way forward.

Sestagalli revealed that he was aware of 0xSifu’s real identity but “decided that an individual’s past doesn’t determine their future.”

Furthermore, the revelation caused many projects in the ‘so-called’ Frog Nation to distance their relationship with 0xSifu. For example, Popsicle Finance and Abracadabra Money posted statements regarding their relationship with 0xSifu.