In a dramatic turn at a bankruptcy hearing, 25-year-old Aidan Pleterski, known as the self-styled “Crypto King,” faced accusations of concealing substantial virtual assets. Trustees alleged Pleterski had tampered with an online gaming account to hide $400,000 worth of virtual goods.
Leanne Williams, attorney for the trustees at Grant Thornton Limited, presented the allegations in court on Wednesday. She claimed that Pleterski had logged onto Steam, a popular gaming platform, last month and altered the username, password, and phone number associated with an account under scrutiny by the trustees. The trustees have been attempting to recover millions allegedly hidden by Pleterski.
Michael Simaan, Pleterski’s lawyer, did not dispute the allegations. “I can’t disagree. I really have nothing to say,” Simaan remarked when prompted by the judge. He admitted to having had no communication with Pleterski since reviewing the new allegations earlier in the week. “I can’t imagine a great response to it,” Simaan added.
For weeks, the appointed accounting firm for the creditors suspected Pleterski of concealing multiple Steam accounts holding significant virtual assets. Despite Pleterski’s affidavit claiming he had disclosed all his login information, data from Steam’s parent company, Valve, appeared to contradict his statements. A court order had compelled Valve to release information on Pleterski’s accounts, revealing that since declaring bankruptcy, he had traded over $430,000 worth of Steam Skins, which are cosmetic items altering weapon appearances in games. Initially, Pleterski argued that these items had no real-world value.
Pleterski, who did not attend Wednesday’s hearing, has been embroiled in controversy since filing for bankruptcy in 2022. The young entrepreneur allegedly defrauded investors of $40 million, promising to invest their money in cryptocurrency. However, according to documents filed by Grant Thornton Limited, he only invested a fraction of the funds, spending $15.9 million on a lavish personal lifestyle, including exotic cars, private jets, and extravagant vacations.
In May, Pleterski was charged with fraud over $5,000 and money laundering by Durham police. He is currently out on $100,000 bail, provided by his parents. Additionally, Pleterski’s associate, Colin Murphy, 27, from Oshawa, was also arrested and charged with fraud over $5,000.
None of the allegations, civil or criminal, against Pleterski or Murphy have been tested in court. However, the trustees have accused Pleterski of obstructing court proceedings, concealing Steam accounts, Scene points, and income from his OnlyFans management service.
During the hearing, Justice W.D. Black asked both sides for their preferred outcomes. Simaan requested a full, unconditional discharge of the bankruptcy, while Williams, representing the trustees, sought the dismissal of the discharge application. Two potential compromises were discussed: postponing the discharge application until the conclusion of Pleterski’s criminal proceedings, or granting a conditional discharge.
Simaan attempted to downplay Pleterski’s actions, portraying him as a young man overwhelmed by sudden wealth. “He’s a kid and he didn’t know what to do with the money,” Simaan argued. “So he bought toys, and toys were Lego and it was fast cars.”
As the legal battles continue, the case of Aidan Pleterski highlights the complexities and potential pitfalls in the rapidly evolving world of cryptocurrency and digital assets.
