Canadian authorities have apprehended a 25-year-old man for allegedly orchestrating a cryptocurrency Ponzi scheme that deceived investors out of more than $30 million. After a thorough 18-month investigation, Ontario police have revealed that Aiden Pleterski has been arrested on charges of fraud and money laundering, as reported by the government-funded Canadian media outlet CBC.

Ontario Police Chief Peter Moreira stated, “It is alleged that Pleterski solicited funds from investors, promising enormous profits and assuring that their initial investments would not incur any losses… These investors grew concerned when they were unable to retrieve their funds from Pleterski, leading them to approach the police.”

Durham Regional Police in Ontario initially received complaints from investors in July 2022, expressing their inability to access their funds. This prompted a joint investigation between Durham Regional Police and the Ontario Securities Commission (OSC), codenamed Project Swan, according to Moreira. Colin Murphy, a 27-year-old alleged associate of Pleterski, was also arrested and charged with fraud.

CBC reports that a bankruptcy proceeding based in Toronto, overseen by Ontario’s Superior Court, has managed to recover approximately $2.20 million for around 160 investors. An investigation conducted by a licensed insolvency trustee discovered that Pleterski, who proudly referred to himself as the “Crypto King,” only invested about 2% of his investors’ funds. Meanwhile, he lavishly spent $11.75 million on a luxurious lifestyle, which included extravagant vacations, private jet and mansion rentals, and the purchase of high-end cars.

Stephen Henkel, a senior investigator for the Ontario Securities Commission (OSC), emphasized the magnitude of the alleged fraud, stating that it required specialized investigators to thoroughly examine the intricate paper trails in the case. “The investigative team consisted of forensic accountants from the OSC… This specialized skill set was crucial in the investigation, as it enabled us to analyze vast amounts of financial information, quantify the alleged fraud, and trace the money… It is vital for individuals considering the purchase of digital assets or any investment product to first verify if the person or business they are dealing with is registered with Canadian securities regulators,” said Henkel.

According to BBC, Pleterski could face up to 14 years in prison if convicted.