The downfall of Canada’s “Crypto King,” who drove a Lamborghini, is said to cost $35 million.
As 140 of his investors try to recoup a total of $35M from his company AP Private Equity Limited, a self-described 23-year-old Crypto King’ is facing a slew of demands.
According to CBC’s Sept. 20 report, creditors are working hard to find out where the money they allegedly gave Canadian Aiden Pleterski for crypto and foreign currency investments for their benefit ended up.
Pleterski’s bankruptcy trustee’s report, minutes of creditors meetings, court filings and complaints to Investigation Counsel PC revealed that Pleterski owned 11 cars, leased four more luxury cars, flew regularly on private jets, and lived in a $45,000 per month rental house on Lakefront.
Related: Russia is thinking about letting cryptocurrency be used for international payments.
Assets worth approximately $2 million have been seize so far, including two McLarens as well as two BMWs and one Lamborghini.
Norman Groot, founder of Investigation Counsel PC, a fraud recovery legal firm, claimed that the “large lifestyle burning rate” doesn’t account for the missing money.
Pleterski was initially sued and his assets and bank accounts were frozen. However, bankruptcy proceedings have now taken over. It is the only way to recover investors’ assets at this stage. Bankruptcy proceedings have priority over civil claims.
Groot stated that investors have no other options but to report to the Ontario Securities Commission or the police.
He said that these processes can take a long time and that it is less likely to recover evidence or money.
Groot stated that investors should be aware of the dangers of high returns and warned them.
The open market does not offer five per cent interest (a week). It is unlikely that a 23-year-old child will be Bill Gates’ next talkee. Instead, he should speak to someone conservative and get another opinion.
Diane Moore, a creditor, invested $60,000 in her investment contract and claimed that she received a 70% split on capital gains. Capital gains were to be targeted at 10-20% biweekly.
She claimed that the whole thing was built on trust, and that she had $50,000 extra.
Micheal Simaan, Pleterski’s attorney, has refuted the allegations and stated that his client has been fully cooperating with the bankruptcy proceedings.
Simaan said that his client began investing in crypto when he was a teenager. In the hope of making it big, Simaan’s success in the bull market inspired others to offer cash for investments.
“Shockingly, it appears that no one thought about what would happen to the cryptocurrency market if it crashed or whether Aiden was qualified to manage these types of investments, given his young age.
Pleterski said that his investment company was in trouble due to “a series margin calls and bad trades,” which were possibly made worse by the ongoing crypto winter and market crash.
Related: What trouble? It looks like high-risk crypto lending is here to stay.
He stated that all of the money invested by investors in 2021 and 2022 was gone.
After requesting bank statements and proof of transactions, the trustee stated that they needed additional evidence to support the trades.
