2024-5-16 09:23 |
Canadian authorities arrested and charged two men with fraud for allegedly defrauding investors of $40 million CAD (approximately $30 million USD) in a bogus cryptocurrency investment scheme. The Ontario Securities Commission announced the charges on Wednesday.
Aiden Pleterski, 25, known as the “Crypto King,” was charged with fraud and money laundering. Colin Murphy, 27, was charged with fraud. The charges stem from a 16-month investigation dubbed Project Swan, coinciding with an ongoing bankruptcy case.
Playing with investor fundsCourt documents and local media reports indicate that between 2021 and 2022, about 160 investors entrusted Pleterski and his company, AP Private Equity Limited, with around $40 million CAD. The funds were intended for investments in the crypto and foreign exchange markets. Reports suggest some investors took out loans to invest with Pleterski.
The bankruptcy trustee determined that Pleterski only invested 2% of the received funds, spending at least $16 million on personal luxuries. These expenditures included over 10 luxury cars, international travel, and renting an $8.4 million lakefront mansion for $45,000 per month. During the bankruptcy process, two McLarens, two BMWs, and a Lamborghini were seized.
Pleterski, who also livestreams, posted videos of his lavish lifestyle, including vacations in Los Angeles, London, and Miami, driving rented luxury cars, and detailing his expenditures. In one video, Pleterski claimed to have spent $150,000 on Legos since 2021.
During bankruptcy proceedings, Pleterski described himself as a “20-something-year-old kid” and admitted to being disorganized, lacking financial records or payment documentation.
Pleterski was released on $100,000 bail on Tuesday, with his parents signing for it. His bail conditions include surrendering his passport, refraining from posting about financial matters on social media, and not buying or trading crypto.
Victims reactInterestingly, Pleterski was allegedly kidnapped in December 2022, beaten, and tortured by five victims of his alleged Ponzi scheme. The kidnappers held him for three days, demanding a $3 million ransom from his landlord-turned-mentor.
Pleterski was released after a video showing him bruised and apologizing to investors was posted on social media. His lawyer later stated the apology was coerced. Four individuals have been arrested and charged with kidnapping.
The development comes amidst Canada’s plans to adopt the international Crypto-Asset Reporting Framework (CARF) for taxation by 2026. The framework will introduce new reporting requirements for crypto asset service providers, including exchanges, brokers, dealers, and ATM operators. The CARF will cover assets such as stablecoins, crypto derivatives, and specific nonfungible tokens.
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