Canadian authorities have arrested a 25-year-old man for allegedly masterminding a crypto Ponzi scheme that defrauded investors for over $30 million.
After an 18-month investigation, police in Ontario have announced that they arrested Aiden Pleterski for fraud and money laundering charges, Canadian government-funded media CBC reports.
Says Ontario Police Chief Peter Moreira,
“It’s alleged that Pleterski solicited funds from investors promising massive profits and also guaranteeing no loss for the original money put out by investors…
These investors became concerned when they were unable to access money held by Pleterski and came forward to police.”
Police in Durham, Ontario initially received complaints in July of 2022 from investors concerned that they couldn’t access their money, sparking a joint investigation between Durham Regional Police and the Ontario Securities Commission (OSC) dubbed Project Swan, according to Moreira.
27-year-old Colin Murphy, an alleged associate of Pieterski, was also arrested and charged with fraud.
According to CBC, a Toronto-based bankruptcy proceeding in Ontario’s Superior Court has recovered about $2.20 million for roughly 160 investors.
An investigation by a licensed insolvency trustee found Pleterski – self-proclaimed as the “Crypto King”– only invested about 2% of his investors’ funds. At the same time, he spent $11.75 million to fund a luxurious lifestyle including going on vacations, renting jets and mansions and buying high-end cars.
Stephen Henkel, a senior investigator for the Ontario Securities Commission (OSC), says the size of the alleged fraud was “massive” and required specialized investigators to fully cover the complex paper trails of the case.
“The investigative team included forensic accountants from the OSC…
This specialized skill set was vital in the investigation because it enabled us to analyze huge volumes of financial information, quantify the alleged fraud and follow the money…
It is critical that all those considering whether to purchase digital assets or any investment product first check whether the person or the business they deal with is registered with Canadian securities regulators.”
BBC reports that Pleterski faces a maximum of 14 years behind bars if convicted.
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