The case of Colin Murphy, an associate of Canada’s “Crypto King” Aiden Pleterski, has taken a new turn as Murphy was sentenced to 5 months in prison for contempt of court in Oshawa, Ontario, Canada. Ontario Superior Court Justice Hugh O’Connell found Murphy in contempt for refusing to surrender his iPhone and for deleting its data when a search warrant was executed against him last year.
The contentious relationship between Murphy and Pleterski has been evident in recent legal battles. Murphy was sued by an investor who was trying to recover $120,000 he had given to Murphy, with the intention that the money be invested in Pleterski’s crypto trading business. However, when the investor tried to cash in his investments, Murphy stopped responding, leaving the client in distress, as the invested money was his life savings.
In a separate case, Judge O’Connell issued a default judgment against Murphy for fraud and breach of fiduciary duty, and he was ordered to liquidate $120,000 of his assets, including luxury items such as a Porsche and a Ford F250, as well as several firearms.
The saga of lavish living and financial misconduct continued as Murphy claimed he didn’t have funds to repay the investor, although Pleterski refuted these claims in messages within the affidavit, stating that Murphy has over $2 million in assets that he can liquidate but is choosing not to do so. Similar to Pleterski, Murphy was known for displaying a luxurious lifestyle on social media, flaunting sports cars and other extravagant possessions.
Despite an upcoming auction to sell Murphy’s vehicles, he has failed to hand over his guns, leading the judge to cite this failure as an aggravating factor in Murphy’s sentence. Norman Groot, the lawyer representing the investor, initially sought a 12-month jail sentence for Murphy, reflecting the severity of the case and its impact on the victim.
The larger picture of the Canadian fraud saga involving Pleterski reveals that over 160 investors are owed $40 million after Pleterski failed to repay them money that was expected to be used for crypto investments. What’s more, a bankruptcy investigation revealed that less than 2% of the money was invested, with over $16 million being spent on Pleterski’s personal luxuries, including private jets, vacations, and luxury cars. So far, only $3 million has been recovered.
The ongoing legal battles and financial misconduct associated with the “Crypto King” and his associates serve as a cautionary tale about the risks and potential consequences of getting involved in fraudulent cryptocurrency schemes. It is also a reminder of the importance of due diligence when investing in the crypto space and the potential for legal repercussions when individuals engage in deceitful practices.