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Wonderland Rattled After Co-Founder Tied to Failed QuadrigaCX Exchange

Wonderland’s TIME tokens fell 32% in European hours after blockchain sleuths revealed ‘Sifu,’ a core member of the founding team, is allegedly a long-time serial scammer, with a conviction and deportation on his record. He was also the co-founder of QuadrigaCX, a failed Canadian cryptocurrency exchange.

Avalanche-based Wonderland has been among the most popular crypto protocols in recent months, with community members referring to themselves as the “Frog Nation.” The protocol locked up billions of dollars of investor funds at its peak, but confidence was rattled among investors this morning.

“0xSifu is the Co-founder of QuadrigaCX, Michael Patryn,” tweeted Zach, a pseudonymous Twitter account with a track record of unmasking crypto scams and nefarious behavior. “If you are unfamiliar that is the Canadian exchange that collapsed in 2019 after the founder Gerald Cotten disappeared with $169m.”

Wonderland founder Daniele Sestagalli confirmed the allegations in a later tweet, saying he was aware of Sifu’s identity and connections to QuadrigaCX: “I want everyone to know that I was aware of this and decided that the past of an individual doesn’t determine their future,” Sestagalli tweeted. He further confirmed Sifu’s identity in a post on Thursday morning.

The community wasn’t impressed by Sestagalli’s response.

“In 2005, he pled guilty to credit and bank fraud. In 2007, he admitted burglary, theft, and computer fraud. In 2018, he and his partner ‘lost access’ to $115M in customer funds,” said Inverse Finance founder Nour Haridy in a response to Sestagalli's tweet. “I agree that inmates deserve second chances but this is NOT about being convicted.”