Canada’s ‘Crypto King’ Faces $30 Million Fraud Charges

Canada’s self-proclaimed ‘crypto king’ has been charged with a $30 million fraud. According to a May 15 announcement from the Ontario Securities Commission, two Canadian men, Aiden Pleterski, 25, and Colin Murphy, 27, have been accused of defrauding Canadians out of $40 million CAD (approximately $30 million USD).

Pleterski, who referred to himself as ‘the crypto king,’ faces charges of fraud and money laundering related to an alleged Ponzi scheme. Meanwhile, his associate has been charged with fraud.

The charges follow a 16-month investigation named Project Swan, conducted alongside a bankruptcy case linked to the scheme. Court documents and local media reports indicate that between 2021 and 2022, the duo raised around $40 million from 160 investors. They operated under the name AP Private Equity Limited and promised to invest the funds in cryptocurrency and foreign exchange markets.

Some investors reportedly took out loans to participate in Pleterski’s scheme. However, as is common with Ponzi schemes, the accused invested only a small portion of the funds and used the majority for personal gains.

The bankruptcy trustee for the case disclosed that only 2% of the total funds raised had been invested. Pleterski spent the remainder on personal luxuries, including the purchase of 10 luxury cars, international travel, and renting an $8.4 million lakefront mansion for $45,000 a month.

In total, Pleterski spent at least $16 million of investor funds on himself. Authorities have seized two McLarens, two BMWs, and a Lamborghini as part of the bankruptcy proceedings.

Pleterski often showcased his lavish lifestyle on social media, live-streaming his trips and vacations, and was frequently seen driving luxury vehicles. In one video, he even claimed to have spent $150,000 on Legos while building a model of the Titanic.

Pleterski referred to himself as a “20-something-year-old kid” who was unorganized during the bankruptcy proceedings. He admitted to not keeping any records of his finances or payments.

Currently, Pleterski is out on a $100,000 bail, signed by his parents. The bail conditions require him to surrender his passport and refrain from finance-related social media posting. He is also prohibited from buying or trading cryptocurrencies. The Ontario Securities Commission will continue its investigation and release more information soon.

The charges come as Canada plans to tighten its regulations on the crypto sector. Regulators aim to enforce the Crypto-Asset Reporting Framework (CARF) by 2026, introducing new reporting requirements and stricter oversight to mitigate crypto tax evasion.

For more detailed and up-to-date news on cryptocurrencies, investing, and finance, stay tuned to Global Crypto News.

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