Canadian authorities have arrested a 25-year-old man for allegedly masterminding a crypto Ponzi scheme that defrauded investors of more than $30 million.
After an 18-month investigation, police in Ontario announced they have arrested Aiden Pleterski for fraud and money laundering, Canadian government-funded media CBC reports.
Says Ontario Police Chief Peter Moreira:
“It is alleged that Pleterski solicited funds from investors promising huge profits and also guaranteeing no loss for the original money spent by investors…
These investors became concerned when they were unable to access Pleterski’s money and reported themselves to the police.”
Police in Durham, Ontario initially received complaints from concerned investors in July 2022 that they were unable to access their money, which Moreira said led to a joint investigation between Durham Regional Police and the Ontario Securities Commission (OSC) called Project Swan .
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 the Ontario Superior Court has recovered about $2.20 million for about 160 investors.
An investigation by a licensed trustee found that Pleterski – self-styled as the “Crypto King” – had invested only about 2% of his investors’ money. At the same time, he spent $11.75 million to finance a luxurious lifestyle, including going on vacation, renting planes and mansions, and buying luxury cars.
Stephen Henkel, a senior investigator with the Ontario Securities Commission (OSC), said the scale of the alleged fraud was “enormous” and that specialized investigators were needed to fully investigate the complex paper trails of the case.
“The investigation team consisted of forensic accountants from the OSC…
These specialized skills were critical to the investigation, as they allowed us to analyze vast amounts of financial information, quantify the alleged fraud and track the money…
It is critical that anyone considering purchasing digital assets or any investment product first checks that the person or company they are doing business with is registered with Canadian securities regulators.”
BBC reports that Pleterski faces up to 14 years in prison if convicted.
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Featured image: Shutterstock/Brazhyk