Two Canadian men, Aiden Pleterski and Colin Murphy, have been arrested and charged with fraud in connection with an alleged crypto and foreign exchange investment scheme that swindled investors out of $40 million CAD (approximately $30 million).
Pleterski, who dubbed himself the “Crypto King,” is facing charges of fraud and money laundering, while Murphy faces charges of fraud.
The criminal charges stem from a 16-month investigation known as Project Swan, conducted by Canadian authorities, the Ontario Securities Commission announced on Wednesday.
The arrests come amidst an ongoing bankruptcy case related to the alleged scheme, which has garnered significant media attention in Canada.
According to court documents, between 2021 and 2022, approximately 160 investors entrusted Pleterski and his company, AP Private Equity Limited, with $40 million CAD for investment in the crypto and foreign exchange markets.
Some investors reportedly took out loans to participate in Pleterski’s investment scheme.
Pleterski Spent $16 Million on Personal Expenses
The trustee overseeing the bankruptcy case of AP Private Equity Limited has discovered that Pleterski only invested 2% of the user funds. He spent at least $16 million on personal expenses.
His lavish purchases included over 10 luxury cars, international travel, and renting an $8.4 million lakefront mansion for $45,000 per month. As part of the bankruptcy process, two McLarens, two BMWs, and a Lamborghini were seized.
CANADIAN MEN CHARGED WITH $30M FRAUD IN CRYPTO AND FOREX SCHEME
Aiden Pleterski, 25, and Colin Murphy, 27, were charged with fraud in a $30M USD crypto and foreign exchange Ponzi scheme. Dubbed “Crypto King,” Pleterski faces additional money laundering charges. The charges… pic.twitter.com/N2mE1ZAbe3
— Crypto Town Hall (@Crypto_TownHall) May 16, 2024
Pleterski, who also dabbled in livestreaming, documented his extravagant lifestyle in videos shared online. The footage showcased his numerous vacations to destinations like Los Angeles, London, and Miami, where he drove rented Lamborghinis and McLarens.
During the bankruptcy proceedings, Pleterski claimed to be disorganized and admitted to lacking financial records or proper documentation, according to CBC.
Pleterski Was Abducted in 2022
It is worth noting that Pleterski was reportedly abducted, beaten, and tortured in December 2022 by five victims of his alleged Ponzi scheme.
After three days of captivity, he was released following a demand for a $3 million ransom made to his landlord-turned-mentor.
Four individuals involved in the kidnapping have since been arrested and charged.
NBA player Shai Gilgeous-Alexander, who hails from Toronto, purchased the lakefront mansion previously inhabited by Pleterski.
However, upon learning of its connection to the fraud case, Gilgeous-Alexander filed a lawsuit to back out of the purchase after experiencing a “threatening visit.”
He had discovered there were threats to burn down the property.
Pleterski was released on $100,000 bail, with his parents acting as sureties.
The conditions of his bail prohibit him from posting about financial matters on social media, trading or purchasing cryptocurrencies, and require him to surrender his passport.
The Ontario Securities Commission has stated that further information regarding the case will be released soon.
In another similar incident, Chinese authorities knocked down an illegal operation involving underground banks and virtual currencies, exposing a staggering $300 million crypto fraud. The investigation led to the arrest of six individuals suspected of engaging in criminal activities related to money laundering between China and South Korea.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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