The founding father of two cryptocurrency hedge funds in New York, Stefan Qin, has been sentenced to 7.5 years in jail and three years of supervised launch. He’s additionally ordered to forfeit about $55 million. The Division of Justice (DOJ) stated that he “engaged in a scheme to steal belongings” from his hedge funds and defraud traders.
Crypto Hedge Fund Founder Will get 7.5 Years in Jail
Stefan Qin, the founding father of two cryptocurrency hedge funds in New York, has been sentenced to 7.5 years in jail, the U.S. Division of Justice (DOJ) introduced final week.
Qin, a 24-year-old Australian nationwide, based the Virgil Sigma Fund and the VQR Multistrategy Fund, which claimed to have over $100 million {dollars} in investments. He pleaded responsible to at least one depend of securities fraud on Feb. four after the U.S. Securities and Change Fee (SEC) filed a lawsuit towards him in December final yr.
In keeping with the DOJ, Qin was sentenced Wednesday to 90 months in jail.
The Division of Justice defined that between 2017 and 2020, Qin owned and managed the 2 cryptocurrency funding funds. “Till just lately, Virgil Sigma presupposed to have over $90 million underneath administration from dozens of traders, together with many in the US,” the Division stated. “Till just lately, VQR had at the least roughly $24 million underneath administration from traders.”
The DOJ detailed:
Since 2017, Qin engaged in a scheme to steal belongings from Virgil Sigma and defraud its traders. Reasonably than investing the fund’s belongings in a cryptocurrency arbitrage buying and selling technique as marketed, Qin embezzled investor capital from Virgil Sigma and used the funds for functions aside from the purported arbitrage buying and selling technique.
Qin additionally tried to steal belongings from VQR as Bitcoin.com Information beforehand reported. The DOJ defined that Qin’s two cryptocurrency funds “have ceased operations and the liquidation and distribution of belongings is being dealt with by a court-appointed receiver in the matter of S.E.C. v. Qin, 20 Civ. 10849,” including:
Qin, 24, was additionally sentenced to a few years of supervised launch, and ordered to forfeit $54,793,532.
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