The founder of two cryptocurrency hedge funds has been charged in US federal securities fraud court. He pleaded guilty and is facing up to 20 years in prison. His two funds together had more than $ 100 million in investment.
- The US Department of Justice (DOJ) announced on Thursday that Stefan He Qin, a 24-year-old Australian and founder of two cryptohedge funds, has been charged with securities fraud and has pleaded guilty to Manhattan federal court.
- Qin “owned and managed two cryptocurrency investment funds” called Virgil Sigma and VQR Multistrategy Fund between 2017 and 2020, the Justice Department described. Both funds were based in New York. According to the DOJ, the two funds had “more than $ 100 million in investment.”
- Peter Fitzhugh, special agent of HSI (Homeland Security Investigations), noted that “Qin mastered the art of deception by representing these companies as profitable investment strategies, so that more victims fell in his tactics and were cheated by nearly $ 100 million.”
- US attorney Audrey Strauss said Qin ‘drained nearly all of the assets of the $ 90 million cryptocurrency fund he owned [the Virgil Sigma fund], stealing investors’ money, spending on indulgences and speculative personal investments, and lying to investors about the fund’s performance and what it had done with their money. “
- In addition, Strauss explained that Qin admitted in federal court that he “tried to steal money” from the VQR Multistrategy Fund “to meet the redemption requirements of the defrauded investors in the former fund.” Until recently, this fund had at least $ 24 million under investor management.
- Qin pleaded guilty to one count of securities fraud, which carries a maximum prison sentence of 20 years. His sentencing is scheduled for May 20.
Do you think Qin should go to jail? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.