- Crypto King Aiden Pleterski has faced scrutiny for hiding income and causing investor losses in an ongoing bankruptcy case.
- The administrator sought to deny Pletersky release unless he paid back millions, as Judge Black considered the case.
During a hearing in Toronto, a lawyer for the trustee in Ontario’s bankruptcy case accused “Crypto King” Aiden Pleterski of showing no remorse for his role in running a Ponzi scheme. Resources.
The lawyer said Pleterski’s lack of cooperation continued to cause financial difficulties for his investors.
New court filings filed by the administrator alleged that Pleterski hid income from online games and other Internet services. The records also highlighted that Pleterski failed to account for millions of dollars worth of cryptocurrencies.
Leanne Williams, Adviser to the Trustee, clearly expressed the Trustee’s position,
“Mr. Pleterski should be ashamed and embarrassed for his behavior, but he clearly is not, and that is exactly why he should not be given a discharge.
Unaccounted for assets and missing funds
The administrator alleged that Pleterski, 25, sold $430,000 worth of virtual weapons for online games and began managing OnlyFans creators for a share of the profits, activities he failed to disclose to creditors.
That undisclosed income is expected to determine whether Ontario Superior Court Justice William Black discharges Pleterski from bankruptcy.
During the meeting, it was established that no funds from these activities were reported to the creditors. Judge Black reserved his decision on the matter.
Pleterski’s bankruptcy proceedings have tracking involved down significant sums of money, with creditors seeking up to $40 million.
However, only about $27 million in proven claims were admitted to the proceedings.
Proposed terms of release
The trustee requested that Pleterski be denied a bankruptcy discharge or that any relief be conditioned on repayment of more than $4.5 million in unaccounted assets and funds.
Additionally, the trustee claimed that Pleterski is to repay approximately 30%, or approximately $9 million, of the money lost to more than 150 creditors.
Pleterski was not present at the hearing, but submitted an affidavit stating that such terms would ensure he would be sentenced to life for actions he described as “mostly immature” and without malicious intent.
Pleterski stated,
“They basically want me to be a pending bankruptcy for the rest of my life.
Crypto King: A History of Legal Trouble
The case against Pleterski has been unfolding since the summer of 2022, when investors forced him into bankruptcy.
For almost two years now, investors have been trying to get back the money they entrusted to Pleterski for crypto and foreign exchange investments.
Pleterski was charged with fraud and money laundering following an 18-month investigation by Durham Regional Police and the Ontario Securities Commission.
Police say Pleterski promised huge profits and guaranteed investors no losses but failed to deliver, prompting many investors to report him to authorities.
A trustee’s investigation revealed that Pleterski invested less than two percent of the funds, spending nearly $16 million on personal luxuries, including private jets, vacations, luxury cars and a lakeside mansion.
The outcome of the bankruptcy hearing remains pending as Judge Black continues to negotiate the terms of Pleterski’s release.