An associate of Whitby, Ont., self-described “Crypto King,” Aiden Pleterski, handed over more than $1 million in bank drafts payable to Pleterski last month in response to a civil search warrant.
Colin Murphy, 26, is one of five so-called “originators,” who raised money for the 24-year-old’s investment operation, according to trustee reports from Pleterski’s bankruptcy proceedings.
A CBC Toronto investigation previously detailed how more than 140 creditors were trying to unravel where at least $35 million, provided to Pleterski and his company AP Private Equity Limited for cryptocurrency and foreign exchange investments, ended up.
The bankruptcy proceeding against Pleterski supersedes all other claims against him. While that’s currently the only avenue to recover funds and assets from Pleterski directly, two investors who allege they’re out a combined $270,000 they invested through Murphy have started civil actions against Murphy to try and recoup what they’ve lost.
An associate of Whitby, Ont., self-described “Crypto King,” Aiden Pleterski, handed over more than $1 million in bank drafts payable to Pleterski last month in response to a civil search warrant.
Colin Murphy, 26, is one of five so-called “originators,” who raised money for the 24-year-old’s investment operation, according to trustee reports from Pleterski’s bankruptcy proceedings.
A CBC Toronto investigation previously detailed how more than 140 creditors were trying to unravel where at least $35 million, provided to Pleterski and his company AP Private Equity Limited for cryptocurrency and foreign exchange investments, ended up.
The bankruptcy proceeding against Pleterski supersedes all other claims against him. While that’s currently the only avenue to recover funds and assets from Pleterski directly, two investors who allege they’re out a combined $270,000 they invested through Murphy have started civil actions against Murphy to try and recoup what they’ve lost.
So far those civil efforts include obtaining freezing orders and Anton Piller orders — civil search warrants — which allowed fraud lawyer Norman Groot to search locations connected to Murphy without warning last month, and seize evidence relevant to recovering his client’s funds. The recovery includes $1 million in bank drafts to Pleterski, data Murphy claims comes from Pleterski’s iCloud account, and Murphy’s two cellphones.
“[Murphy] breached the court order to turn over one of his iPhones to us, and when he did turn it over, the data on that phone had been deleted,” said Groot, founder of the fraud recovery firm Investigation Counsel PC.
“Data relevant to both the issues involving Mr. Murphy and the larger Pleterski issue were likely on this phone and our concern is that there were cryptocurrency wallets or other assets on this phone as well.”
Murphy found in contempt of court
On Jan. 20, an Ontario Superior Court judge found Murphy in contempt of court in Oshawa for refusing to surrender his iPhone and for deleting data on it. In an interview outside the courthouse, Murphy said he deleted data because he keeps “super sensitive stuff” on the phone concerning his girlfriend.
“I’ve been keeping stuff to give to somebody,” said Murphy. “I released all that stuff to [Groot] but apparently I’m still some multi f–king millionaire.”
Originally appeared on CBC.ca.