Aiden Pleterski, dubbed the "Crypto King," and his associate Colin Murphy have been charged with fraud and money laundering by Canadian authorities. The charges stem from a 16-month investigation, dubbed Project Swan, which uncovered a bogus cryptocurrency investment scheme that defrauded investors of approximately $30 million USD.

Pleterski, 25, and Murphy, 27, allegedly convinced around 160 investors to entrust them with $40 million CAD between 2021 and 2022. However, instead of investing the funds as promised, Pleterski spent a significant amount on personal luxuries, including luxury cars, international travel, and renting a lavish lakefront mansion. Only 2% of the received funds were invested, according to the bankruptcy trustee.

Pleterski's extravagant lifestyle was showcased on social media, where he posted videos of his luxurious spending habits. He even claimed to have spent $150,000 on Legos since 2021. The investigation and subsequent charges have led to Pleterski's release on $100,000 bail, with strict conditions, including surrendering his passport and refraining from posting about financial matters on social media.

The case has drawn attention to the need for stricter regulations in the cryptocurrency market. Canada plans to adopt the international Crypto-Asset Reporting Framework (CARF) for taxation by 2026, which will introduce new reporting requirements for crypto asset service providers. The framework aims to cover assets such as stablecoins, crypto derivatives, and specific nonfungible tokens, promoting transparency and accountability in the industry.