Canada's 'Crypto King' and his associates arrested for $40 million Ponzi scheme fraud and money laundering

Two Canadian men have been arrested and charged with fraud for allegedly defrauding investors of $40 million Canadian dollars (about $30 million) in a cryptocurrency and foreign exchange investment scheme. Aiden Pleterski, 25, who calls himself "Crypto King," has been charged with fraud and money laundering in connection with an alleged Ponzi scheme. The Ontario Securities Commission also announced Wednesday that his colleague, 27-year-old Colin Murphy, has been charged with fraud. The criminal charges are the result of a 16-month "Project Swan" investigation by Canadian authorities, while the bankruptcy case related to the alleged scheme is ongoing and has been widely followed by Canadian media. Pleterski was released on $100,000 bail on Tuesday, paid by his parents, according to CBC. Pleterski's bail conditions require him to surrender his passport, not post financial content on social media, and not buy or trade cryptocurrencies. The Ontario Securities Commission said Wednesday that it would release "further information" about the case on Thursday. According to court documents and local media reports, between 2021 and 2022, about 160 investors provided Pleterski and his company AP Private Equity Limited with about $40 million in funds to invest in the cryptocurrency and foreign exchange markets. Some of these investors reportedly even took out loans in order to invest with Pleterski. The trustee overseeing the bankruptcy case concluded that Pleterski invested only 2% of the funds he received, while spending at least $16 million on more than 10 luxury cars, international travel, and renting an $8.4 million lakefront mansion for $45,000 a month. Two McLarens, two BMWs and a Lamborghini were seized during the bankruptcy proceedings. Pleterski also likes live streaming, in which he shows off his luxurious life, including multiple vacations to Los Angeles, London and Miami, driving rented Lamborghinis and McLarens, and listing his expenses in detail. In one video, Pleterski filmed himself assembling a Lego model of the Titanic and estimated that he had spent $150,000 on Lego since 2021. During the bankruptcy process, Pleterski referred to himself as a "twenty-something kid" and told creditors that he was poorly organized and had no records of finances or payments, according to CBC. In December 2022, Pleterski was kidnapped, beaten and tortured by five people who claimed to be victims of his alleged Ponzi scheme. The kidnappers held him for three days and tortured him before demanding a $3 million ransom from his landlord and mentor. Pleterski was eventually released and apologized to investors in a video he released. But his lawyer later said the video was recorded under duress and posted on social media. Four suspects involved in the kidnapping have reportedly been arrested and charged with kidnapping. (CoinDesk)