A Canadian judge has reportedly dismissed an application to discharge the alleged crypto fraudster Aiden Pleterski from bankruptcy until criminal proceedings against the suspect are completed.
According to a report by the Canadian Broadcasting Corporation (CBC), Ontario Superior Court Justice William Black argues that it was in the interest of “public protection and accountability” to dismiss Pleterski’s application for discharge from bankruptcy.
[adinserter block="1"]“Refusing a discharge absolutely at this stage, pending the result of the criminal prosecution, would allow this court to take into account, in fashioning an appropriate remedy at that point, the outcome of the criminal proceedings.”
A discharge from bankruptcy is an official court order releasing an entity from liability for certain types of debt.
Pleterski, who styles himself as the “Crypto King,” allegedly masterminded a digital asset Ponzi scheme that defrauded more than $30 million from investors. Pleterski was arrested in May on fraud and money-laundering charges after an 18-month-long investigation.
Initial complaints were filed with the police in Durham, Ontario in July of 2022. Durham Regional Police and the Ontario Securities Commission (OSC) subsequently launched a joint investigation reportedly dubbed Project Swan.
Pleterski and his businesses were placed into bankruptcy in 2022 and accounting firm Grant Thornton was named trustee.
In his ruling dismissing Pleterski’s application for discharge from bankruptcy, the judge says that he expected the alleged crypto fraudster to “cooperate fully with the Trustee going forward, and to make full disclosure of all relevant facts.”
Leanne Williams, a lawyer for the trustee, had earlier complained that Pleterski had refused to cooperate in the bankruptcy proceedings.
“Mr. Pleterski should be embarrassed and ashamed of his conduct, but he clearly is not, and this is precisely the reason he should not be granted a discharge. He has lied about his assets; he has lied about his income.”
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