- Crypto king Aiden Pleterski has faced criticism for hiding income and causing investor losses in an ongoing bankruptcy case.
- A trustee tried to deny Pleterski’s dismissal unless he repays millions, as Judge Black deliberated on the case.
During a hearing in Toronto, a lawyer for the trustee in Ontario’s “Crypto King” bankruptcy case accused Aiden Pleterski of showing no remorse for his role in running a Ponzi scheme. sources.
The lawyer argued that Pleterski’s lack of cooperation continues to cause financial problems for his investors.
New court documents filed by the trustee alleged that Pleterski hid income from online gaming and other Internet services. The data also highlighted Pleterski’s failure to account for millions of dollars worth of cryptocurrencies.
Leanne Williams, counsel for the trustee, has clearly expressed the trustee’s position:
“Mr. Pleterski should be ashamed of his behavior, but that is clearly not the case, and this is precisely why he should not be dismissed.”
Unaccounted assets and missing funds
The trustee alleged that Pleterski, 25, sold $430,000 worth of virtual weapons for online games and began managing the makers of OnlyFans for a profit share, activities he did not disclose to creditors.
These undisclosed earnings are expected to determine whether Ontario Superior Court Judge William Black will release Pleterski from bankruptcy.
During the hearing it was noted that none of the funds from these activities had been reported to creditors. Judge Black reserved his decision on the issue.
Pleterski’s bankruptcy proceedings did just that involved following to fork out significant sums, with creditors claiming up to $40 million.
However, only approximately $27 million in proven claims were admitted into the proceedings.
Proposed terms of discharge
The trustee has requested that Pleterski be denied bankruptcy discharge, or that discharge be made conditional on the repayment of more than $4.5 million in unrecorded assets and monies.
In addition, the trustee advocated that Pleterski repay approximately 30%, or about $9 million, of the money lost by more than 150 creditors.
Pleterski was not present at the hearing, but provided an affidavit expressing that such circumstances would see him sentenced to life in prison for actions he described as “largely immature” and without malicious intent.
Pleterski stated:
“Essentially, they want me to remain an unresolved bankrupt for the rest of my life.”
Crypto King: A History of Legal Troubles
The case against Pleterski has been unfolding since the summer of 2022, when investors forced him into bankruptcy.
For almost two years, investors have been trying to get back the money they entrusted to Pleterski for crypto and currency investments.
Pleterski has been charged with fraud and money laundering following an 18-month investigation by Durham Regional Police and the Ontario Securities Commission.
Police allege that Pleterski promised huge profits and guaranteed no losses to investors, but failed to deliver, prompting many investors to report him to authorities.
The trustee’s investigation found that Pleterski had invested less than two percent of the money, while spending nearly $16 million on personal luxuries, including private jets, vacations, luxury cars and a lake mansion.
The outcome of the bankruptcy discharge hearing remains pending as Judge Black continues to deliberate on the terms of Pleterski’s discharge.