June 15, 2024

![Crypto King Arrest](https://investmentshoax.com/wp-content/uploads/2024/05/1715855156811_processed-1024×585.jpg)

Two Canadians, Aiden Pleterski and Colin Murphy, were nabbed and charged with fraud in a supposed cryptocurrency and forex investment plot. This scheme reportedly scammed investors of $40 million CAD or roughly $30 million.

Self-proclaimed “Crypto King,” Pleterski, is facing accusations of fraud and money laundering, while Murphy is charged with fraud. This is the outcome of a comprehensive 16-month investigation, Project Swan, done by Canadian authorities as shared by [the Ontario Securities Commission](https://www.osc.ca/en/news-events/news/joint-investigation-leads-fraud-money-laundering-charges-against-self-proclaimed-crypto-king-and). This arrest is concurrent with a bankruptcy case related to this fraud scheme that has generated significant media coverage in Canada.

According to the court records, between the years 2021 and 2022, around 160 investors put their trust and funds, amounting to $40 million CAD, with Pleterski’s company, AP Private Equity Limited. These funds were expected to be used for investments in the cryptocurrency and forex markets. It was reported that some investors even took out loans to partake in Pleterski’s investment venture.

Pleterski’s Personal Luxuries Amassed from Investors’ Funds

The trustee in charge of AP Private Equity Limited’s bankruptcy discovered that Pleterski only used a minuscule 2% of the investor’s money for investments. The rest, approximating $16 million, was spent on personal expenses. These expenditures included luxury cars, international travels, and renting an extravagant lakefront mansion worth $8.4 million. As a part of the bankruptcy proceedings, notable possessions like two McLarens, two BMWs, and a Lamborghini were confiscated.

![Crypto Fraud](https://t.co/N2mE1ZAbe3)

Pleterski, known for his extravagant lifestyle, documented his lavish exploits on videos. These videos, which he posted online, flaunted his opulent vacations to places like Los Angeles, London, and Miami, where he would often drive rented luxury cars.

In the bankruptcy case, Pleterski confessed to being disorganized and not having the proper financial records, [according to CBC](https://www.cbc.ca/news/canada/toronto/ontario-s-crypto-king-and-his-associate-arrested-charged-with-fraud-1.7204958).

Notorious Past of Pleterski

Interestingly, Pleterski was reportedly kidnapped, beaten, and tortured in December of 2022 by five victims of his alleged Ponzi scheme. After being held captive for three days, only a ransom demand of $3 million to his landlord and mentor led to his release. Four individuals involved in the abduction have since been apprehended and charged.

NBA player Shai Gilgeous-Alexander, originally from Toronto, bought the lakefront mansion previously occupied by Pleterski. After learning about its link to the fraudulent scheme, he sought to cancel the purchase due to a “threatening visit” hinting at an arson threat.

Following his arrest, Pleterski was released on a $100,000 bail, with his parents guaranteeing it. His bail conditions demand that he desist from posting about financial matters on social media, trading, or buying cryptocurrencies, and mandate him to surrender his passport. According to the Ontario Securities Commission, more details regarding the ongoing case will be shared soon.

In another recent incident in China, an illegal operation linked to underground banks and virtual currencies was dismantled, revealing an astounding $300 million crypto fraud. Six individuals involved in this illicit activity that promoted money laundering between China and South Korea were arrested.

EXPLORE: 10 Best Decentralized Crypto Wallets for 2024

Note: Investing in crypto carries a high risk. This article is to inform and doesn’t serve as an investment guide. Invest cautiously as you may lose everything.

FAQs

Who are the men involved in the alleged crypto fraud?

Aiden Pleterski and Colin Murphy, both Canadian are involved in this alleged fraud. Aiden Pleterski, nicknamed “Crypto King,” is accused of fraud and money laundering, while Colin Murphy faces fraud charges.

Can you provide more details about the people affected by this crypto fraud?

About 160 investors got duped in this fraud scheme. They entrusted Pleterski’s company, AP Private Equity Limited, with $40 million CAD for investment in the cryptocurrency and forex markets between 2021 and 2022. Some of these investors borrowed money to participate in this scheme.

What are the charges against Pleterski?

Pleterski, aka the “Crypto King,” faces charges of fraud and money laundering. He allegedly used only 2% of the entrusted funds for investments, spending the rest, approximating to $16 million, on personal indulgences and extravagance. This includes the purchase of luxury cars and international trips, as well as renting an expensive lakefront mansion.