CRYPTO KING’S ASSOCIATE GETS 5-MONTH JAIL FOR COURT CONTEMPT 

Colin Murphy, an associate of Canada’s notorious “Crypto King” Aiden Pleterski, has been sentenced to five months in prison for contempt of court in Oshawa, Ontario, Canada. Ontario Superior Court Justice Hugh O’Connell found Murphy in contempt for his refusal to surrender his iPhone and for deleting its data when a search warrant was executed against him last year.

The case against Murphy stems from a lawsuit filed in February 2023 by an investor who sought to recover $120,000 he had given to Murphy. The funds were intended for investment in Pleterski’s crypto trading business. When the investor attempted to cash in his investments, Murphy went silent, as evidenced by WhatsApp messages included in a court affidavit. The investor’s money represented his life savings.

In November, Judge O’Connell issued a default judgment against Murphy for fraud and breach of fiduciary duty in a case similar to that of the defrauded investor. Murphy was ordered to liquidate $120,000 worth of assets, including luxury vehicles and firearms.

Murphy had previously claimed that he didn’t have the funds to repay the investor, a statement contradicted by messages from Pleterski within the affidavit. Pleterski alleged that Murphy had over $2 million in assets that could be liquidated.

Both Murphy and Pleterski were known for flaunting lavish lifestyles on social media, showcasing expensive sports cars and other luxuries. While an auction to sell Murphy’s vehicles is scheduled for later this month, he has yet to surrender his firearms, which the judge cited as an aggravating factor in his sentence.

The investor’s lawyer initially sought a 12-month jail sentence for Murphy in court submissions last fall. Pleterski, the central figure in the Canadian fraud case, owes over 160 investors $40 million, as he failed to repay funds that were intended for crypto investments. A bankruptcy investigation revealed that less than 2% of the money was invested, with over $16 million spent on private jets, vacations, and luxury cars. So far, only $3 million has been recovered.

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