In a Toronto court on Monday, an Ontario man facing allegations of money laundering for an international drug trafficking network had his financial records scrutinized as he sought release before his extradition trial. Rolan Sokolovski was questioned by prosecutors regarding his tax filings, the financial status of his jewelry business, Diamond Tsar, and his earnings from poker and cryptocurrency trading, which he claimed sustained his lifestyle for nearly a decade.
Sokolovski, a dual Lithuanian-Canadian citizen, stated that he generated over $100,000 annually from poker activities and cryptocurrency trades between 2013 and 2020, making profits of up to US$200,000 in certain transactions. He admitted that these earnings were not reported to the Canada Revenue Agency as he believed gambling proceeds did not require declaration for tax purposes. He equated cryptocurrency trading to gambling in his perspective.
Under Canadian tax laws, winnings from gambling are typically considered windfalls and are not taxable unless they are deemed income from a profession or business. Transactions involving cryptocurrency, such as selling, trading, or spending, can result in gains or losses that must be reported in tax filings.
Sokolovski, aged 37, was arrested last autumn along with other Canadians implicated in collaborating with former Olympic snowboarder Ryan Wedding, a reputed drug kingpin on the FBI’s most wanted list. Allegations from U.S. authorities claim that Sokolovski managed the organization’s financial records, obtained luxury items for Wedding, and created a “bejewelled necklace” as compensation for a murder.
The court is set to hear from individuals willing to supervise Sokolovski if he is released on bail later this week. Ontario Superior Court Justice Peter Bawden decided on Monday to withhold any information that could reveal the potential sureties to reduce the possibility of harm or danger to them.
Last week, Sokolovski’s legal team urged the court to safeguard the identities of the sureties, citing safety concerns. Prosecutors contended that only the addresses of the sureties should be shielded from public disclosure. Multiple days have been allocated for the bail hearing, with prosecutors opposing Sokolovski’s release on grounds of protecting the public, upholding the justice system’s integrity, and preventing flight risks.