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Pickering man charged in connection with alleged cryptocurrency scam

Police say the alleged scam began in the summer months of 2017 when a man was seeking investors for a startup cryptocurrency that would be an alternative to Bitcoin.
Police say the alleged scam began in the summer months of 2017 when a man was seeking investors for a startup cryptocurrency that would be an alternative to Bitcoin. Jasmine Pazzano / Global News File

Durham Regional Police say a Pickering man has been charged in connection with an alleged cryptocurrency scam that saw victims lose tens of thousands of dollars.

Police say the alleged scam began in the summer months of 2017 when a man was seeking investors for a startup cryptocurrency that would be a purported alternative to Bitcoin.

The man provided investors with a certificate and promised them a cryptocurrency e-wallet for a currency called Alepy, which would be accessible online, police allege.

READ MORE: Peterborough woman deposits stolen cheques and withdraws over $15,000: police

After the man received the money from investors, the Alepy website was reportedly shut down.

Two victims who lost a total of $51,000 have since been identified in the investigation, police report.

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READ MORE: Keswick man arrested after multiple frauds at Guelph business: police

Eric Hentschel, 31, has since been charged with several offences, including fraud over $5,000 and possession of proceeds of crime over $5,000.

Police say he was released on an undertaking.

Anyone with information is asked to contact police at 1-888-579-1520 ext. 2528 or Crime Stoppers anonymously at 1-800-222-8477.

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