Is the man behind the cryptocurrency crash of the Netflix series also behind the collapse of Terra Luna and other…

According to many, the collapse of the famous Terra Luna project is partly behind the crypto crash. However, those who piece together the information in this article can dig much further. There are conspiracies that one and the same man/pseudonym is behind the last major crypto crashes that rocked the crypto world.

A theory about the person behind the crash of various projects.

So who is it?

The conspiracy is associated with the pseudonym "Sifu". Whose awareness begins with his participation in a multi-million dollar cryptocurrency scheme where he teamed up with one of the biggest blockchain projects in the world, of those days.

When it comes to the various crashes that society remembers, such as the fall of Lehman Brothers and the like, he has almost always managed to name a culprit who was officially responsible or at least had something to do with it. However, this is not always the case with cryptocurrencies, as the space tries to behave anonymously.

There is one person or pseudonym that contributed to the cryptocurrency crash and that has been controversial from the start. And see how he has used the market's obsession with anonymity to remain influential in cryptocurrencies and this environment going forward.

Sifu has been associated with the name Michael Patryn, also known as "0xSifu" or just "Sifu", is a blockchain developer involved in one of the biggest crypto mysteries ever. Sifu, has taken on a number of different aliases over the years and was also closely associated with the DeFi project that set the stage for the Terra crash, which catalyzed the subsequent broader market crash.

Accountability is still very difficult to determine in the crypto environment. There are almost no public crypto companies on Wall Street, except for Coinbase. Cryptocurrencies also allow companies and various entities to completely obfuscate who is responsible at all.

Anonymity can sometimes backfire on users, as has been shown several times, an example is the recent SquidGame token that briefly went up in smoke, lured investors and made a lot of people lose money, and there are a lot of projects like this in the crypto space, it's something to watch out for.

When we look at Sifu's career on the infamous QuadrigaCX exchange, as well as his proximity to the Terra project in the months leading up to its crash, we can see what one person can influence in a market that is largely unregulated.

Even before his involvement in cryptocurrencies, Sifu was involved in white collar crime. After changing his name from Omar Dhanani to Omar Patryn and moving to the US from Canada in the early 2000s, Sifu became involved with Shadowcrew.com. This group committed numerous banking and credit frauds between 2002 and 2004 by selling stolen credit card information. When Shadowcrew was dismantled in 2004, Sifu continued to commit various bank frauds until his arrest, which led to his imprisonment, deportation, and subsequent change of his middle name to Michael Patryn in Canada.

Entrance to the crypt

In 2013, Sifu entered the crypto market by co-founding the QuadrigaCX exchange with Gerald Cotten. Quadriga became so famous in a negative sense that a Netflix documentary was made about it , detailing its mysterious history. In its early years, the exchange operated entirely on paper and ran only local crypto trades. As it began to expand its reach, more investors witnessed how Sifu and Cotten's project evolved.

https://www.youtube.com/watch?v=vW2BPQ15OSw

Back in 2015, Quadriga inexplicably lost a large sum of money, namely the CAD 850,000 raised to help QuadrigaCX to a public listing, and it disappeared without explanation. In June 2017, it lost another CAD 17 million in Ethereum, with the founders attributing the huge losses to a smart contract error.

https://www.youtube.com/watch?v=-dpHT_4PJG4

From November 2018 to April 2019, things became extremely mysterious. Cotten, just before leaving for his honeymoon in India, changed his will and left CAD 9.6 million to his wife, Jennifer Robertson. Less than two weeks later, Cotten reportedly died in India. The details surrounding his death are uncertain, as his body was taken from the hospital to a hotel before being embalmed and his name was misspelled on the death certificate .

In total, the company owed customers up to CAD215 million. Robertson says most of those funds are locked in cold wallets that only Cotten had access to. During Quadriga's bankruptcy proceedings , creditors were only able to recover CAD 46 million of that missing total.

Transitioning from QuadrigaCX to other projects?

Sifu withdrew presumably. His alleged past criminal activities became public and he tried to distance himself from Quadriga. He denies being Omar Dhanani, although reports in Canada's Globe and Mail cite legal documents to the contrary. He also says he left the company in 2016 before Cotten's death, though a number of crypto insiders remain skeptical, such as Kraken CEO Jesse Powell.

In September 2021, a new dapp ecosystem appeared onthe Avalanche network, centered around a dapp called Wonderland. Wonderland and its many companions like Abracadabra and Popsicle Finance are the brainchild of developer Daniele Sesta Sestagalli.

Wonderland is perhaps one of his biggest projects, combining a number of DeFi products into one package. Abracadabra, the stablecoin venture for Wonderland, teamed up with Terra in late 2021 to bridge their Magic Internet Money token with what is now TerraClassicUSD, coincidence? Neither party knew at the time that the algorithmic models of their stablecoins would be behind the complete collapse of the market.

What many didn't know was that Sifu was an important part of the Wonderland project, which was tasked with managing all of its assets, including those of its users. His involvement was relatively unknown until a Twitter user revealed Sifu's identity in late January 2022 . Sesta initially denied knowledge of Sifu's identity until this news surfaced.

https://twitter.com/zachxbt/status/1486591682728673282

Many investors were furious and wanted to leave Wonderland right away, and the rapid outflow of liquidity didn't just spell disaster for Wonderland tokens. Of course this is just conjecture but Abracadabra had two products linked to UST, including one that heavily collateralizes MIM with UST. When investors flooded MIM, the UST algorithm was unable to deal with its own liquidity crisis, leading to the first brief crash of the Terra network this year.

Indeed, Terra had unwittingly partnered with Sifu, and the partnership shook the underlying mechanism itself. Terra's StableCoin lost its value, also in part by sinking Wonderland.

This event led to the creation of Luna Foundation Guard, a non-profit organization tasked with maintaining a new pool of funds to provide Terra's StableCoin. However, the Luna Foundation's own actions contributed to Terra's misfortune and helped trigger the broader market crash. The organization saturated the market by selling $3 billion in crypto reserves - a decision that ultimately did not help stabilize the network but quite the opposite.

Dominoes started to fall yes it's just conjecture but the follow through is there. The fall of Terra directly correlated with the bankruptcy of several crypto institutions such as Celsius or Three Arrows Capital.

Sifu goes on

As for Sifu, it is still operating in the DeFi space. However, he has made no secret of his role in his latest project. The "Sifu's Vision" investment fund and its companion token Sifu Vision is dedicated to making investors rich, but only on Patryn's terms, so I would definitely stay away from this project. Through Sifu's story, we can see how much damage one individual can cause - both explicitly and implicitly - in the crypto space.

How would things have unfolded if Sifu's identity and past had been known from the start? Terra might not have collapsed. Luna Foundation Guard might not have flooded the market with liquidity, which contributed in large part to the crash. QuadrigaCX investors could have been spared from financial problems and millions lost.

We'll never know if Sifu is really the first domino in the cryptocrat. Regardless, investors must now reckon with the reality of anonymity on the blockchain and its unintended consequences.

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