Canadian authorities arrest self-proclaimed 'Crypto King' for $30M fraud

Canadian authorities have arrested two individuals, including self-proclaimed "Crypto King" Aiden Pleterski, 25, for their involvement in an alleged $30 million cryptocurrency and foreign exchange investment scheme. Pleterski faces charges of fraud and money laundering, while his associate, 27-year-old Colin Murphy, has been charged with fraud. The arrests come following a 16-month investigation dubbed Project Swan by Canadian authorities.

Misuse of Investor Funds: The Pleterski Scandal

Between 2021 and 2022, Pleterski and his company, AP Private Equity Limited, reportedly received approximately $40 million CAD from around 160 investors for investment in cryptocurrency and foreign exchange markets. However, investigations revealed that Pleterski only invested 2% of the funds, while allegedly spending at least $16 million on personal luxuries, including luxury cars, international travel, and renting an $8.4 million lakefront mansion.

Social Media Spectacle: Pleterski's Lavish Lifestyle Exposed

Pleterski, who also livestreams, documented his extravagant lifestyle on social media, including luxury car rentals, international vacations, and expensive purchases like Lego sets. During the bankruptcy process, Pleterski claimed disorganization and lack of financial record-keeping, attributing it to his young age.

Legal Drama Unfolds: Pleterski's Ordeal and Fallout

In December 2022, Pleterski was reportedly kidnapped, beaten, and tortured by five individuals who claimed to be victims of his scheme. He was held for three days before being released, but a video of him apologizing to investors, allegedly coerced, was posted online.

Four individuals involved in Pleterski's alleged kidnapping have been arrested and charged. NBA player Shai Gilgeous-Alexander, who purchased Pleterski's former mansion, filed a lawsuit to back out of the purchase upon learning of its connection to the fraud case.

Pleterski was released on $100,000 bail, with conditions including surrendering his passport, refraining from discussing financial matters on social media, and abstaining from cryptocurrency trading.

The arrest of Pleterski and his associate sheds light on the risks associated with cryptocurrency investment schemes. The legal proceedings underscore the importance of diligence and caution in financial dealings.