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Canada’s ‘Crypto King’ Arrested, Accused of Running $30 Million Ponzi Scheme
(Kitco News) – Canada’s self-proclaimed “Crypto King” Aiden Pleterski and his accomplice Colin Murphy have been arrested and charged with fraud for allegedly defrauding investors of CAD40 million ($30 million) through a crypto and foreign exchange investment scheme.
According to a news release of the Ontario Securities Commission, the pair were charged with crimes under the Criminal Code of Canada as part of Project Swan, a joint investigation by the Durham Regional Police Service (DRPS) and the Ontario Securities Commission (OSC ).
“Mr. Pleterski has been charged with one count of fraud over $5,000, contrary to Section 380(1)(a) of the Criminal Code, and one count of laundering the proceeds of Canadian crime, contrary to Section 462.31(1)( a) of the Penal Code,” the statement said. “The allegations involving Mr. Pleterski are covered by a publication ban issued on May 14, 2024, pursuant to subsection 517(1) of the Penal Code.”
Murphy was also charged with fraud in excess of $5,000 under Section 380(1)(a) of the Penal Code.
Project Swan included an investigation that lasted almost two years and involved Pletereski and his company, AP Private Equity Limited. Court documents and local media reports suggest that between 2021 and 2022, 160 investors gave Pleterski and his company around 40 million Canadian dollars to invest on their behalf in the crypto and foreign exchange markets.
In August 2022, the Ontario Superior Court ordered Pleterski and his company into bankruptcy and appointed accounting firm Grant Thornton Limited as administrator.
Grant Thornton determined that Pleterski invested less than 2% of the money he received and spent at least $16 million on himself — including purchasing more than 10 luxury cars, traveling internationally and renting a $100 lakefront mansion. 8.4 million for $45,000 per month.
While testifying during the bankruptcy proceedings, Pleterski referred to himself as a “20-something kid” and told creditors that he was disorganized and didn’t keep records of his finances or payments, according to a CBC report.
As part of the bankruptcy proceedings, authorities seized two McLarens, two BMWs and a Lamborghini.
The story has been trending in Canadian headlines since July, when Pleterski, who is also a small-time live streamer, detailed his Crypto King lifestyle on social media, posting videos about his numerous vacations to places like Los Angeles, London and Miami. , driving rented Lamborghinis and McLarens and detailing his lavish spending. Even after being forced into bankruptcy, Pleterski’s social media accounts still portrayed his jet-set lifestyle.
One exploit involved Pleterski filming himself assembling a Lego model of the Titanic and admitting that he has spent $150,000 on Legos since 2021.
His story received more attention after Pleterski was allegedly kidnapped, beaten and tortured by five victims of his alleged Ponzi scheme in December 2021. Reports indicate that his alleged kidnappers detained him for three days and subjected him to torture before demanding that his landlord becomes mentor pays a $3 million ransom for his release.
Pleterski was eventually freed by his captors, but not before a 12-minute video showing him swollen and bruised as he apologized to investors was posted on social media. Four of the alleged perpetrators were arrested and charged with kidnapping.
Following his arrest on May 2, Pleterski was released from custody on Monday, with local reports indicating that his parents posted his $100,000 bail.
Pleterski’s bail conditions require him to reside at his parents’ home in Whitby and he is barred from leaving Ontario, having already surrendered his passport to Durham police. He is also prohibited from contacting his associates or investors, having a debit or credit card, or posting on social media about financial matters.
At a press conference on Thursday, Whitby-based Durham Regional Police Chief Peter Moreira he said Pleterski and Murphy “promised huge profits” to investors, but in the end, “they were ultimately defrauded and were unable to collect” those profits.
He added that Pleterski may have solicited investors as early as February and called the investigation one of the largest he has seen in this region of Canada. It took more than 40 court orders to gather evidence in the investigation that lasted almost 18 months before the arrests.
Delegate Moreira recalled that the maximum penalty for fraud of this magnitude is 14 years in prison.
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