In the United States, a trial was held against the organizer of the fraudulent cryptocurrency investment fund Virgil Capital, Stephen Tsin. For the creation of a financial pyramid, he was sentenced to 7 years in prison.
Stefan Qin started the Virgil Sigma Fund in 2017 when he was just 20 years old. The fund worked for three years and collected more than $ 90 million from investors. Qin pleaded guilty to fraud back in February this year, and on September 15, the verdict was announced.
“I used investor confidence without regard for the law and morality to ensure my success,” Qin admitted in an address to those affected by his actions.
The US Department of Justice emphasized that the organizer Virgil Capital withdrew almost all the cryptocurrencies invested by investors and used them for their own investments and a luxurious life. At the same time, he continued to lie to investors about the success of the fund. More than 100 Americans became victims of the pyramid.
As usual, investors were lured in with huge profits. According to a fake report provided to investors, the fund made almost 500% profit in 2017. Even in 2019, when market conditions were unfavorable, the fund reported a return of 30%. At the same time, Qin stated that Virgil Capital passed a third-party financial audit.
As a reminder, Virgil Capital’s account balances were frozen at the request of the US Securities and Exchange Commission (SEC) at the end of 2020.
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