A self-proclaimed Canadian “Crypto King” and his associate, who secured over C$40 million ($29.4 million) from investors through a crypto and forex investment Ponzi scheme, have been arrested and charged with fraud. According to the Ontario Securities Commission (OSC) and Durham Regional Police, 25-year-old Aiden Pleterski, a Whitby resident, allegedly used the funds he collected from investors to pay out others large profits and then ran up his luxury lifestyle of exotic vehicles, a million-dollar mansion, private jet trips abroad and more. The OSC and police refrained from divulging more details about the case, titled Project Swan, at a news conference on Wednesday.
However, the press release disclosed that Pleterski was accused of committing fraud offenses of over C$5,000 and laundering the proceeds of the crime, which could land him up to 14 years in prison if convicted. The suspect was also released on bail with conditions that he could not contact his associates or investors, possess a debit or credit card, or post on social media about financial matters.
The press release said Pleterski was arrested after a 16-month investigation called Project Swan, which began in July 2022 after the Durham Regional Police received numerous complaints. The investigation involved the OSC’s enforcement branch and forensic accountants.
“Investors should never feel compelled to invest in digital assets or cryptocurrency investments with people who are not registered with the OSC and don’t display the required professional credentials,” Stephen Henkel, senior investigator for the OSC, said at the news conference. Henkel added that the investigation found that Pleterski and his company, AP Private Equity, defrauded thousands of investors from across Canada and the U.S. Henkel also said the company’s assets were worth less than the $29 million it claimed to be worth.
According to court documents, Pleterski allegedly invested just 1.6% of the funds he received from investors and spent the rest on personal luxury goods and his company’s operations. He also reportedly paid a small amount back to some investors to simulate returns. In December last year, Pleterski was kidnapped and beaten by five men linked to an investor who demanded a multi-million dollar ransom.
