Canadian Crypto King Charged with $30 Million Fraud.
In a recent announcement by the Ontario Securities Commission on May 15, two Canadian men, Aiden Pleterski, 25, and Colin Murphy, 27, have been charged with defrauding Canadians of $40 million CAD (around $30 million USD).
Pleterski, who dubbed himself ‘the Crypto King,’ faces charges of fraud and money laundering in connection with an alleged Ponzi scheme. Meanwhile, his associate has been charged with fraud as well.
The charges stem from a 16-month investigation known as Project Swan, conducted in parallel with a bankruptcy case linked to the scheme.
Court documents and reports from local media indicate that between 2021 and 2022, the pair amassed approximately $40 million from 160 investors. Operating under the guise of AP Private Equity Limited, they pledged to invest the funds in cryptocurrency and foreign exchange markets.
Allegedly, some investors even took out loans to participate in Pleterski’s scheme.
However, typical of Ponzi schemes, the accused allocated only a small portion of the funds for actual investments and diverted the majority for personal enrichment.
The bankruptcy trustee overseeing the case disclosed that a mere 2% of the total funds collected were put into investments. Pleterski utilized the remainder to purchase ten luxury vehicles, engage in international travel, and rent a $8.4 million lakefront mansion for $45,000 per month.
Overall, the self-proclaimed crypto king squandered at least $16 million of investor funds on personal expenses. Law enforcement authorities have seized two McLarens, two BMWs, and a Lamborghini as part of the bankruptcy proceedings.
Pleterski frequently flaunted his opulent lifestyle across various social media platforms. He indulged in live-streaming his extravagant trips and vacations, showcasing himself driving luxury cars and engaging in lavish spending.
In one instance, he boasted about spending $150,000 on Legos during a video where he constructed a Lego model of the Titanic.
In the bankruptcy proceedings, Pleterski portrayed himself as a “20-something-year-old kid” who lacked organization. He acknowledged not maintaining any financial or payment records.
As of Tuesday, he has been released on a $100,000 bail, signed by his parents. The conditions of his bail include surrendering his passport, refraining from posting finance-related content on social media, and abstaining from buying or trading cryptocurrencies.
The Ontario Securities Commission will proceed with its investigation, with further details expected to be disclosed in the coming days.
The charges align with Canada’s efforts to strengthen its oversight of the crypto industry. Authorities are aiming to implement the Crypto-Asset Reporting Framework (CARF) by 2026, which will bring in new reporting standards and tighter regulatory supervision to combat crypto tax evasion.
