Two Ontario men, including a self-proclaimed “Crypto King,” have been arrested and charged with fraud. They allegedly defrauded investors of over C$40 million ($29.4 million).
Aiden Pleterski, 25, faces charges of fraud exceeding C$5,000 and laundering criminal proceeds, while his associate, Colin Murphy, 27, has also been charged with fraud. Murphy was released on an undertaking, according to a police statement.
Investigation and Charges
The Durham police launched an investigation in July 2022 following numerous complaints about investment fraud by a man from Whitby. The investigation uncovered an accomplice who also promised high weekly returns through investments.
"Victims provided money to him under similar circumstances, expecting he would invest it on their behalf and return large profits," the police stated. "These victims were ultimately defrauded and unable to recover their funds."
Police plan to hold a news conference on Thursday to provide more details about the case.
Investors Left High and Dry
For over a year and a half, Pleterski’s investors have been searching for the more than C$40 million they entrusted to him for cryptocurrency and foreign exchange investments. According to CBC News, a Toronto bankruptcy process in Ontario Superior Court has recovered about $3 million for around 160 investors so far.
An investigation by an insolvency trustee revealed that Pleterski diverted $16 million for personal use, including renting private jets, luxury vacations, car purchases, and leasing a lakefront mansion. Shockingly, only about 2% of the funds were actually invested.
During this period, Pleterski portrayed himself as a professional streamer online. In one live broadcast, he responded to a viewer’s comment calling him “jobless” with the phrase “internet money gang, internet money.”
Crypto Conman’s Kidnapping
In a dramatic turn of events, Pleterski was allegedly kidnapped last year from downtown Toronto. He was held captive for three days, tortured, and subjected to demands for a multi-million dollar ransom. The kidnappers reportedly drove him around southern Ontario before releasing him.
Further Crackdown
In December, an Ontario judge issued an arrest warrant for Ryan Rumble, another associate of Pleterski, who allegedly helped run the multi-year, multi-million dollar crypto investment scam.
As the investigation continues, authorities are working to uncover the full extent of the fraud and recover as much of the investors’ money as possible. The upcoming police news conference is expected to shed more light on the case and the actions being taken against those involved.
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