Wonderland Finance
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 8 → 33. Problems weighed by who is responsible: concerns that are not fraud −36, problems around the subject, caused by others −5.8. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -36 |
| Problems around it, caused by others | -5.8 |
| Sum | 23 |
Score: 33/100 (kept between 0 and 100)
How scoring works →Summary
Wonderland Finance was an OlympusDAO-style reserve currency protocol launched in September 2021 on Avalanche by Daniele Sestagalli, offering rebase staking yields of up to 80,000% APY with its TIME and wMEMO tokens. In January 2022, on-chain investigator ZachXBT revealed that the protocol's anonymous treasury manager, known as '0xSifu', was Michael Patryn — a convicted felon and co-founder of the fraudulent Canadian exchange QuadrigaCX — triggering an immediate collapse in token prices and a governance crisis that effectively ended the protocol. Sestagalli later acknowledged he had known Patryn's identity for weeks before the public disclosure.
Connected Entities
9 entities · 60 linked investigations- Abracadabra Money→mentioned with→QuadrigaCX(75%)
- Abracadabra Money→mentioned with→ZachXBT(65%)
- Wonderland Finance→mentioned with→OlympusDAO(70%)
- Wonderland Finance→mentioned with→QuadrigaCX(80%)
- Wonderland Finance→mentioned with→ZachXBT(70%)
- Wonderland Finance→mentioned with→Avalanche(70%)
- OlympusDAO→mentioned with→QuadrigaCX(75%)
- QuadrigaCX→mentioned with→QuadrigaCX / Gerald Cotten(85%)
- Popsicle Finance→mentioned with→QuadrigaCX(80%)
- Popsicle Finance→mentioned with→ZachXBT(70%)
- + 13 more
Connected Through
8 shared actors · 457 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □ZachXBTorganization
- □Avalancheorganization
- □QuadrigaCXorganization
- □OlympusDAOorganization
Timeline(9 events)
2 September 2021
Wonderland Finance launches on Avalanche with TIME token at approximately $554. Protocol is a fork of OlympusDAO, offering rebase staking yields exceeding 80,000% APY. Michael Patryn (0xSifu) serves as treasury manager from the outset.
Capital.com / AltcoinBuzz7 November 2021
TIME token reaches an all-time high of approximately $10,063, representing a gain of roughly 1,700% from launch. Protocol treasury peaks at approximately $680 million in backing assets.
CoinGecko / Capital.com16 January 2022
Wonderland transitions stakers from MEMO to wMEMO (Wrapped MEMO) as the primary governance and yield-bearing token, deprecating TIME and MEMO as actively traded tokens.
Wonderland / Medium (Volta Club DAO Newsletter)26 January 2022
A cascade of leveraged wMEMO liquidations drives TIME to a low of $420 as collateral positions on Abracadabra Money are forcibly unwound. Automated protocol buybacks fail to execute effectively. Daniele Sestagalli suffers an estimated $15 million in personal liquidation losses.
CoinDesk27 January 2022
ZachXBT publishes a Twitter thread publicly identifying 0xSifu as Michael Patryn, co-founder of QuadrigaCX, stating he confirmed the identity with Sestagalli directly. TIME drops approximately 32% in European hours. Sestagalli publicly confirms Patryn's identity the same day, acknowledging he had known for one month.
CoinDesk / CoinTelegraph28 January 2022
Sestagalli asks Patryn to step down from his treasury manager role. A governance proposal to remove Sifu passes with over 83% of participating token holders voting in favor. SPELL and ICE tokens (related Frog Nation protocols) also decline sharply.
CoinDesk29 January 2022
A broader governance vote on whether to wind down Wonderland and return treasury funds to holders concludes. The vote results in approximately 55.1% in favor of continuation and 44.9% in favor of dissolution — the most participated governance vote in DeFi history at the time, with over 22,000 addresses voting.
Bloomberg / CoinDesk30 January 2022
Sestagalli signals Wonderland will be dissolved despite the majority vote to continue, citing irreconcilable community division and stating 'the Wonderland experiment is coming to an end.'
CoinTelegraphFebruary 2022
Patryn's wallet transfers approximately 3,000 ETH worth $8.28 million to Tornado Cash in multiple batches following his removal. Patryn claims the funds are personal holdings transferred for privacy. Sestagalli reverses his wind-down position in a Discord Q&A, stating 'I'm here to fix this and make it all back.'
CoinDesk / CryptoBriefingDecision Log
- slot 455362358 · hash GWvxrZ3H423BTHskg3EJ4zRsDBs7MNmLjDNJavPTDUeW
- slot 423160823 · hash AyohMBWqWu11G2BGicK3bf5nCzgnRT1HPadpHPWmfXQk
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 19 of 21 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-5
generated: 5/30/2026, 12:57:29 PM
last updated: 10/10/2026, 6:42:36 PM
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