Quadriga co-founder Michael Patryn trades UST crash for $760,000 gain

Quick Take

  • Quadriga co-founder and crypto trader Michael Patryn bought the dip when UST lost its peg overnight.
  • He made $760,000 on the trade, according to PeckShield.

Michael Patryn, the co-founder of now-defunct exchange Quadriga CX, took a profitable punt on the stablecoin TerraUSD (UST) as it broke its peg with the dollar yesterday. 

According to transaction analysis by PeckShield, the Ethereum address associated with the ENS name Sifu.eth, which is owned by Patryn, made several UST trades in the last 24 hours — netting him $760,000.

We were unable to contact Patryn for comment.

UST is an algorithmic stablecoin that attempts to remain pegged to the US dollar through its relationship with the token Luna (LUNA). Yet over the last few days, it has lost its peg as large holders have rushed to sell the tokens. The Luna Foundation Guard — a non-profit entity designed to support UST — used its bitcoin reserves in an attempt to shore up the peg. Despite this, however, the token traded as low as $0.61 to the dollar on Monday.

While some were cautious that the token could fall lower, Patryn took the bet that it would return toward parity with the dollar. According to transaction analysis by PeckShield, he swapped $2.8 million of tether (USDT) for 3.88 million UST when it was near its lowest point. 

After that point, the value of UST rose toward the dollar mark — rising as high as $0.94. During this rally, Patryn sold the UST back for $3.56 million of USDT, resulting in a $760,000 profit. He then bridged some of the funds over to the Avalanche blockchain.

Patryn, who formerly went by the name Omar Dhanani, became known in the industry as one of the co-founders of Quadriga when it collapsed and turned out to be largely devoid of its users’ crypto. After that, he became a crypto trader operating under the pseudonym Sifu. 

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