The founder of the cryptocurrency hedge fund Virgil Capital, Stephan Qin, pleaded guilty to defrauding investors in the amount of more than $ 90 million. He used the money to lead a luxurious lifestyle.
According to a US Department of Justice press release, 24-year-old Australian citizen and founder of cryptocurrency hedge fund Virgil Capital Stefan Qin has appeared in federal court on securities fraud charges.
From 2017 to 2020, Qin managed two funds: Virgil Sigma Fund LP from New York and VQR Multistrategy Fund LP from the Cayman Islands. During this time, Qin lied to investors and withdrew $ 90 million from Virgil Sigma Fund to fund his luxury lifestyle.
In addition, he lied about the Sigma fund’s earnings and the whereabouts of investors’ money, and also tried to cover up his fraud by paying Sigma investors money from the VQR fund. In December, the US Securities and Exchange Commission (SEC) accused Qin of defrauding fund investors by using investment proceeds for “personal gain as well as other high-risk investments.”
According to the regulator, Qin fabricated the records, prevented investors from withdrawing $ 3.5 million, and tried to use $ 1.7 million of investors’ money to pay off Chinese money lenders.
“The house of cards has collapsed and Qin is now awaiting sentencing for his brazen theft,” said US Attorney Audrey Strauss.
Earlier this month, the SEC filed charges against three executives of the closed cryptocurrency firm Bitcoiin2Gen for defrauding investors for $ 11.4 million through a B2G ICO advertised by actor Steven Seagal.
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