Canada’s ‘Crypto King’ and Associate Arrested, Charged With Fraud in Alleged $30M Ponzi Scheme

Aiden Pleterski, 25, who goes by the moniker “Crypto King,” has been formally accused of fraud and money laundering charges according to the Ontario Securities Commission. Simultaneously, Colin Murphy, aged 27, faces accusations of fraud.

During the course of a lengthy investigation codenamed Project Swan, which lasted for sixteen months, Canadian authorities have announced criminal charges. Simultaneously, there is ongoing bankruptcy proceedings relating to the suspected scheme, generating significant media coverage in Canada.

Based on court filings and local news sources, it is alleged that from 2021 to 2022, around 160 investors provided approximately $40 million CAD ($30 million USD) to Pleterski and AP Private Equity Limited for investment in crypto and forex markets on their behalf. Some of these investors are said to have obtained loans to fund their investments with Pleterski.

In the course of managing the bankruptcy proceedings, the appointed trustee determined that Pleterski had put in no more than 2% of the received funds, while he reportedly spent a substantial amount – approximately $16 million. This expenditure was directed towards acquiring over ten extravagant cars, frequent international travel, and renting an expensive lakefront property valued at $8.4 million, with a monthly rental fee of $45,000. During the bankruptcy case, two McLarens, two BMWs, and a Lamborghini were confiscated as assets.

As a small-time crypto investor and livestreamer, I’ve shared my experiences with my audience through videos. In these videos, I’ve documented my travels to exciting cities like Los Angeles, London, and Miami, as well as my rentals of luxurious cars such as Lamborghinis and McLarens. I’ve been open about my expenses, giving an approximate figure of $150,000 spent on Legos since the beginning of 2021 in one of my videos, where I even assembled a Lego model of the Titanic for my viewers.

In the course of filing for bankruptcy, Pleterski described himself as a “young adult in his twenties” and admitted to creditors that he lacked the ability to maintain ordered financial records and document his transactions. (Based on a CBC report)

Alleged kidnapping

In the last month of 2022, it is claimed that Pleterski was forcibly taken, brutally assaulted, and tormented by five individuals believed to have been defrauded by his Ponzi scheme. As per the accounts, these alleged captors kept Pleterski hostage for a three-day duration, inflicting pain upon him before ultimately requesting that his landlord-cum-mentor pay a $3 million ransom in exchange for his safe return.

As a researcher, I came across the case of Pleterski, who was eventually set free from custody. However, a disturbing 12-minute video surfaced on social media, featuring him with noticeable swelling and bruises while expressing apologies to investors. His legal representative subsequently stated that this recording had been obtained under duress.

Four of the alleged perpetrators have been arrested and charged with kidnapping.

Toronto-born NBA player Shai Gilgeous-Alexander bought a lakefront mansion worth $8.4 million, previously owned by Pleterski. However, he initiated a lawsuit to terminate the deal after becoming aware of its connection to Pleterski. Reports indicate that Gilgeous-Alexander and his girlfriend experienced an intimidating encounter with an individual seeking Pleterski, followed by discovering that there had been threats to destroy the property.

Next steps for Pleterski

As a crypto investor following the latest news, I learned that Pleterski was granted bail for $100,000 on Tuesday, with his parents serving as the surety. Based on a Wednesday report from CBC, there are certain conditions attached to his release. Among these conditions, he is required to relinquish his passport, abstain from sharing any information related to financial matters on social media, and avoid buying or trading cryptocurrencies altogether.

As a crypto investor, I’m keeping a close eye on the latest developments from the Ontario Securities Commission. They announced on Wednesday that they will be sharing more details about the ongoing case on Thursday.