This article is written in direct response to the Bloomberg piece (of shit) here.
Traditional media will take every chance it can get to destroy defi. The notion of decentralization has already disrupted their business model in media, and if it proliferates into the financial mainstream, their bosses will be out of a job as well. Can't have that. So they lie, assume, and virtue signal to scare people away from defi and back to their 0.01% interest rate and $35 late fees at banks.
The story goes that Wonderland, once a billion-dollar plus defi treasury and top 100 crypto, completely imploded after news broke that one of the protocol heads was a felon linked to a previous crypto scandal. The angle is typical: Defi is full of shadowy super coders, so let's all be scared of it and regulate it to hell.
But let's take a look at the case — in Bloomberg's own words.
The felon in question, 0xSifu, has a government name of Michael Patryn. Patryn was connected, according to Bloomberg, to a previous crypto scam with the QuadrigaCX exchange in Canada. But the very next paragraph in the article says
Patryn...wasn’t accused of any wrongdoing related to Quadriga.
His felony came not in Canada at all, but in the US
after pleading guilty to conspiracy to commit credit-and-bank card fraud in 2005, and burglary, grand larceny and computer fraud two years later.
So if the felony came from something that wasn't Quadriga, and Patryn wasn't even accused in Quadriga, why the fuck was Quadriga mentioned in the first place?
Scare tactic. Because the charges that did send Patryn up the river could really mean anything. According to Bloomberg, Patryn had people watching him after Quadriga, and those people likely made life hard for him in the years after.
Meanwhile a separate address also linked to Patryn was similarly active. The address was traced to him by Taylor Monahan, chief executive of Ethereum tool MyCrypto, who has been keeping tabs on the wallet since she was a victim in Quadriga’s collapse.
So let's get this straight. Patryn, who wasn't charged with anything in Quadriga, was able to be stalked online by a private citizen, and his wallets identified by said citizen with no special access.
Put a pin in that. We'll come back to it.
Let's also get something out of the way. I'm not on Patryn's side here. Guy might be a crook for all I know. But I also know this: Just because the US finds Patryn guilty for the same shit Jaime Dimon does doesn't mean Patryn is automatically a crook. He just went to jail, that's all. That alone doesn't ruin his reputation in my eyes, because the US has ZERO moral standing in financial matters. But to Bloomberg, that's all you need for a scarlet letter. Let's not check the veracity or the integrity of the possible crooks who might have been prosecuting him.
And once Bloomberg's value signaled its assumption, here comes the angle.
It’s probably a negative blow for anonymity in DeFi,” added Lammer. “If the anonymous nature of DeFi means that a person like Michael Patryn can be in charge of a major DeFi treasury, that’s a pretty big problem.
Now you wait just a cotton pickin minute.
Remember that pin I told you to stick in that previous statement? You can take it back out now. What was anonymous about this? Patryn was eventually found out by private citizens, again with no special access. Once it became known that 0xSifu was Patryn, the protocol tanked, and someone was able to report the exact wallets to watch for suspicious drainage, because someone had known they were Patryn's all along.
But according to Bloomberg, the shadowy super coders in defi deserve more regulation.
For those in the cheap seats: Patryn was never anonymous, and he was caught without defi regulation. So yeah.
We won't even get into how most defi protocols don't get off the ground now unless they have fully doxxed teams with LinkedIn profiles. Tradfi poseurs can't wait to show off their credentials to fast track the seed round. The overwhelming majority of defi protocols are headed by fully doxxed teams.
Daniele Sestagalli, the "CEO" of Wonderland, is fully doxxed. Bloomberg acts as if Patryn was not only a master financial criminal who is guilty of anything a crooked government charges him with, but also that Patryn completely controlled the minds of a competent, accomplished team of tech and financial professionals. No, Bloomberg, Wonderland was actually running just fine until the narrative of a "bad, bad felon controlling the treasury" began to outweigh the fundamentals of the project.
Again, Patryn's no saint. When his cover got blown, apparently he tried to drain his $450 million wallet and was successful in moving around $380 million of the funds. But again, EVERYONE KNOWS IT WAS HIM. The "cloak of anonymity" Bloomberg so desperately wants to put on defi just doesn't exist. And regulation was not necessary to find this information. It was found by a private citizen.
Even if Bloomberg is able to warp the defi narrative and get everything it wants, it won't stop guys like Patryn from getting money. It will only stop you. Even after going to jail, Patryn was able to amass $450 million in crypto somehow. You're the poor fucking schlub who won't be able to invest in anything that can actually make a profit — you'll be limited to whatever tokens Coinbase and the US government deem properly sanitized for you. In the meantime, Nancy Pelosi will be frontrunning your shitty trades worse than any bot ever could. US investors are already disincluded from an inordinate amount of great crypto projects, some even headed by American founders and devs.
And as for the point about people losing money because Patryn's secret got out? I'll tell you, I was one of those people. Well, I really didn't lose lose. I just didn't gain as much as I would have if Wonderland had kept going. Cuz you see, I'm not so dumb as to think any project with 80,000% APY is going to last for a great deal of time. I was dollar cost averaging profits out of Wonderland months ago, preparing for its eventual fall at some point for whatever reason. This is the reason? Ok. I'm actually still holding to see if Sestagalli can come back from this.
But any fucktwat who lost his life savings from putting money into Wonderland and fucking MAGIC INTERNET MONEY and fuckity fuckin SPELL FUCKING TOKEN deserves what he gets.
I'm also not ruling out the possibility this is a false flag operation. I'd never heard of Sestagalli or Patryn before this. Who's to say they're not government plants, put here to run the ol' "I make the problem and provide the solution" bullshit play? Government wants to overregulate crypto, so they draw in 200,000 idiots only to dump on them and make them lose money so they get mad. These are the same faggits calling for regulation on the entire defi space even though we just showed there is no need for regulation to catch crooks. Doing bad business in crypto is a stupid idea. You're not anonymous, and if people can find your wallet, they can find you. I personally wouldn't feel safe anywhere in this world if I scammed 9 digits out of people. I'd rather make 8 ethically and never have to look over my shoulder.
Spread the word — Bloomberg doesn't get to warp defi's narrative to usher in regulation from the same corrupt system that created the need for crypto in the first place. So what Wonderland was being run by a felon in the eyes of the US. He wasn't a felon while Wonderland was working, which it did quite well for quite a few months. What, shit has to run forever or it's a scam? Ok, well I guess British currency is a scam then, because it was the world reserve currency an epoch ago and it's not now. I guess gold-backed dollars were a scam, because they existed before and they don't now. Guess the horse-and-buggy was a scam, because everybody rides in cars now. You morons calling Wonderland a scam are only doing that because you're in the red now and you didn't take profits while you were in the green. Shut up and learn how to do finance. No regulator is going to protect you from your own stupidity or make you rich. Only thing they'll do is keep you away from the good stuff while raising your taxes on all the bad.
Shadowy super coders and US financial felons unite.