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January 27, 2022: Sifu, Not Safu πŸ•΅οΈπŸš¨

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January 27, 2022: Sifu, Not Safu πŸ•΅οΈπŸš¨

Sesta Sacks Serial Scammer

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Jan 27, 2022
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January 27, 2022: Sifu, Not Safu πŸ•΅οΈπŸš¨

curve.substack.com
Twitter avatar for @passytee
Pas @passytee
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10:31 AM βˆ™ Jan 27, 2022
195Likes29Retweets

Many of the people and protocols in Web3 are brand new, yet we’re building on the graveyard of over a decade of hacks and scams. Cryptocurrency is permissionless, so the bad actors of the past are always ready to resurface and prey on a fresh audience.

Yesterday, ace detective @zachxbt.eth fired off a warning about 0xSifu.

Twitter avatar for @zachxbt
zachxbt.eth @zachxbt
1/ This needs to be shared @0xSifu is the Co-founder of QuadrigaCX, Michael Patryn. If you are unfamiliar that is the Canadian exchange that collapsed in 2019 after the founder Gerald Cotten disappeared with $169m I have confirmed this with Daniele over messages.
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6:47 AM βˆ™ Jan 27, 2022
5,342Likes1,580Retweets

0xSifu, neΓ© Michael Patryn, neΓ© Omar Dhanani has a nasty history of identity theft, embezzlement, and ponzis (but not the good kind).

Twitter avatar for @MidasTheFool
MidasTheFool @MidasTheFool
Who exactly is @0xSifu? aka Michael Patryn? aka Omar Dhanani? I've had the unfortunate pleasure of following this criminal for years. A thread on why we need this guy out. $TIME $WMEMO $SPELL
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10:36 AM βˆ™ Jan 27, 2022
1,600Likes458Retweets

On display here is the rougher side of double-edged sword that is cryptocurrency. We’re building a censorship-resistant and truly open financial system. This also means bad actors can and will keep coming back. What is a community to do?

This is a tricky job. No degen is pure enough to cast the first stone. If we concoct a purity blacklist, everybody will ultimately be banned from DeFi. The ability to welcome sinners along with saints is one of the promises of cryptocurrency.

At the same time, we can’t allow fraudsters to run rampant. The policing ends up falling onto the community itself, putting protocol devs in the unenviable position of both shipping products and playing pope.

For the most part, the community appears to strike the right balance. Serial fraudsters may always have the right to create a new wallet, but web3 offers no basic right to allow just anybody to get access to a protocol’s multisig wallet. The true currency in this space is not necessarily the tokens we see on screen, but a track record of trust earned between users and builders. Kudos to all who stepped up.

Twitter avatar for @Tetranode
TΞtranodΞ (πŸ’Ž, πŸ’Ž) @Tetranode
Abra and Wonderland won't merge ...at least I'll try to make an effort to dissuade this from happening As long as Wonderland is not part of Abra I will still back it
7:42 AM βˆ™ Jan 27, 2022
1,267Likes112Retweets
Twitter avatar for @AndreCronjeTech
Andre Cronje πŸ‘» @AndreCronjeTech
I still support Dani, still planning on working with him, but there are lines, a history of consistent fraud, theft, and malicious behavior isn't a "mistake", that's intent. Having Sifu manage funds, especially user funds, can be argued is negligence. That's all I have
7:48 AM βˆ™ Jan 27, 2022
3,039Likes362Retweets

All the while, frog herder @danielesesta faced extreme pressure, (justifiably in my view), to jettison Sifu or be considered negligent.

Twitter avatar for @alphaketchum
AΜΈΝ ΜŽΜ‘Ν›ΜΝΜ’Ν‰Μ­ΝŽΝ–Ν™Ν–Ν–Μ² lpha @alphaketchum
Legal Case against Dani … I won’t support and I won’t support anyone who vouches for it. I however have been thinking about introducing generalized investment reporting and strategic disclosures for all major DeFi protocols. Protocols would opt in into these standards. 🧡
10:38 AM βˆ™ Jan 27, 2022
76Likes8Retweets
Twitter avatar for @masked_E
Secret Farmer @masked_E
If @danielesesta says @0xSifu is like family and he trust him. Then we can't trust his decision making. The man making unilateral decisions with a $800m "SPAC" has put your future in the hands of a known scammer. Surprised Dani didn't "die in India yet. $spell $time $wmemo
2:25 PM βˆ™ Jan 27, 2022
6Likes2Retweets

Initially Daniele stood by 0xSifu, claiming it a matter of forgiveness.

Twitter avatar for @danielesesta
Daniele never asks to DM @danielesesta
Do you make the same mistakes you did in the past?
7:26 AM βˆ™ Jan 27, 2022
511Likes45Retweets
Twitter avatar for @danielesesta
Daniele never asks to DM @danielesesta
1/ Today allegations about our team member @0xSifu will circulate. I want everyone to know that I was aware of this and decided that the past of an individual doesn’t determine their future. I choose to value the time we spent together without knowing his past more than anything.
6:46 AM βˆ™ Jan 27, 2022
1,849Likes206Retweets

While you may forgive an arsonist, you have no obligation to immediately hand them a lighter. Trust can and must take time to rebuild.

After sufficient pressure, Wonderland agreed to oust Sifu pending a community vote.

Twitter avatar for @danielesesta
Daniele never asks to DM @danielesesta
My statement on Recent Developmens at Wonderland
mirror.xyzStament on last Wonderland developments β€” MirrorDear Frogs and Crypto Community,
11:10 AM βˆ™ Jan 27, 2022
2,679Likes482Retweets

Convex inadvertently finds itself downstream of this controversy. Amidst the chaos, some people noted Sifu purchased $1MM worth of $CVX on the cheap.

Twitter avatar for @DefiMoon
DefiMoon πŸ¦‡πŸ”Š @DefiMoon
πŸ‘€ Sifu aping into $CVX in case there's a vote against $MIM gauges on Curve? πŸ€”
Twitter avatar for @DefiSniper
DeFi Sniper @DefiSniper
🟒 Swapped $1.01M in $MIM for $CVX on 0x βœ– πŸ‹ ($30.8M) - sifu.eth (0x5DD596) https://t.co/9zElTulmSI
9:16 AM βˆ™ Jan 27, 2022
113Likes12Retweets
Twitter avatar for @BuffetTheory
Flywheeler @BuffetTheory
Sifu just drained the $CVX/$WETH pool on Uniswap and routed it to GnosisSafe, bringing the total CVX supply on exchanges down to 5.84% Hoping this isn't just to put out the $TIME dumpster fire...
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12:08 AM βˆ™ Jan 27, 2022
50Likes4Retweets

Convex took strong action previously against Mochi. Would it be appropriate in this case too?

At the moment though, Sifu appears to be making no attempts to hijack the protocol. So while we should definitely be circumspect, blocking users may not be the precedent we want to set.

Trolls also attempted to start rumors that Sifu was one of Convex’s early investors. This has been swiftly refuted by all parties.

Twitter avatar for @CurveFinance
Curve Finance @CurveFinance
@napgener We did our internal investigation about convex back when it was voted in. No one of early (preallocation) investors is sifu. So this is incorrect information
2:15 PM βˆ™ Jan 27, 2022
23Likes3Retweets

This particular flare-up may be resolving in the right direction, but the pseudonymous nature of cryptocurrency all but guarantees Sifu and other serial scammers will be back to scam again. If we want everybody to stay safe, what can we do?

If you’re sharp with data, the blockchain data is all public. Grab your toolkit and dig in. Or contact detectives and offer to help build them tools to aid their work.

If you’re not technical but have funds, consider donating to @zachxbt who sounded the alarm in the first place.

Twitter avatar for @dcfgod
DCF GOD @dcfgod
Sent 4E (~$10k) to @zachxbt for his continued work in defi This is also a bribe to never write a thread on me ty ❀
10:49 AM βˆ™ Jan 27, 2022
1,245Likes20Retweets
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Twitter avatar for @Satsduck
Satsduck @Satsduck
@MoonOverlord Integrity. It shows Andre is appreciative of Zach revealing it now. Imagine this went on for another 6 months? Then Frog Nation would have infected everyone connected to Andre too. This was a blessing for Andre; he dodged a bullet with this release. Hence the big donation imho
2:41 PM βˆ™ Jan 27, 2022

This space works best when we police it ourselves, as opposed to allowing corruptible governments to do the job. This can make the space scary to outsiders, but in my experience most degens share a positive vision of keeping the community safe and are aligned towards doing the right thing.


Update 9:20 AM PT

Sifu may not actually be getting axed? 🀦

Twitter avatar for @fozzydiablo
veFudzy @fozzydiablo
governance was a mistake
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3:36 PM βˆ™ Jan 27, 2022
14Likes1Retweet

In other news, a different rogue with a checkered past joined the Bankless Podcast to discuss the Curve Wars yesterday. Many thanks to all the people who replied to requests for comments, it would have been impossible to conduct the interview without your help. If you missed it, you can catch the full interview here:


Disclaimers! Author is not an ethicist.

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January 27, 2022: Sifu, Not Safu πŸ•΅οΈπŸš¨

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