Two Canadian men have been arrested and charged with fraud after allegedly defrauding investors of CAD 40 million (approximately USD 30 million) in a cryptocurrency and foreign exchange investment scheme.
Self-proclaimed “crypto kingpin” Aiden Pretelski, 25, was charged with fraud and money laundering for his involvement in the alleged pyramid scheme. The Ontario Securities Commission announced Wednesday that his colleague, 27-year-old Colin Murphy, has been charged with fraud.
The criminal charges are the result of a 16-month investigation, which Canadian authorities are calling Project Swan, and an ongoing bankruptcy case related to the alleged scheme, which has received much media attention in Canada. It was raised at some point.
From 2021 to 2022, approximately 160 investors asked Mr. Pretelski and his company, AP Private Equity Limited, to invest in cryptocurrencies and foreign exchange on their behalf, according to court documents and local media reports. The company provided approximately $40 million in Canadian dollars (US$30 million) as an investment in the project. market. Some of those investors reportedly took out loans to invest in Pretelsky.
The trustee overseeing the bankruptcy case said Pretelski invested only 2% of the funds he was given, bought more than 10 luxury cars, traveled abroad and made $8.4 million on $45,000 a month. He concluded that he spent at least $16 million on himself, including renting a lakeside mansion. Two McLarens, two BMWs and one Lamborghini were seized during the bankruptcy proceedings.
Pretelski, who is also a small-time livestreamer, posted videos of his escapades, including frequent vacations to places like Los Angeles, London and Miami, driving rented Lamborghinis and McLarens, and details of his spending. In one video of Mr. Pretelski assembling a Lego model of the Titanic, he estimates he has spent $150,000 on Lego since 2021.
During the bankruptcy process, Pretelsky referred to himself as a “20-something kid” and told creditors that he was disorganized and did not keep records of his finances or payments, CBC reported. It is said that he spoke.
In December 2022, Mr. Pretelski was allegedly kidnapped, beaten, and tortured by five victims of an alleged pyramid scheme. According to reports, Pleterski's kidnappers held him captive for three days, tortured him, and then demanded that his landlord and mentor pay a $3 million ransom for his release. .
Mr. Pretelski was eventually released, but a 12-minute video of him apologizing to investors while swollen and bruised, which his lawyer later claimed was coerced, was posted on social media. It was done.
Four of the alleged perpetrators were arrested and charged with kidnapping.
Toronto-born NBA player Shai Gilgeous-Alexander bought the lakefront mansion that Pletelski once called home for $8.4 million, but backed out of the purchase after learning of his association with Pletelski. filed a lawsuit against the seller. According to the report, Gilgeous-Alexander and his girlfriend received a “threatening visit” from a man looking for Pretelsky, and later learned that he had threatened to set the house on fire.
Pretelski was released on $100,000 bail on Tuesday, signed by his parents, CBC reported Wednesday. Pletelski's bail conditions require him to surrender his passport, not post on social media about financial matters, and not to buy or trade virtual currencies, the report added.
The Ontario Securities Commission said Wednesday it would release “further information” about the case on Thursday.
