(The AEGIS Alliance) – On Thursday, a founder of two New York-based cryptocurrency hedge funds, age 24, with greater than $100 million in investments made a guilty plea to securities fraud.
Stefan He Qin was charged with duping investors by claiming he used a buying and selling algorithm to reap the benefits of value variations for various cryptocurrencies, federal prosecutors announced.
Qin stole investor dollars from his Virgil Sigma Fund LP and tried to dip into his VQR Multistrategy Fund LP to pay back investors from the first fund, prosecutors mentioned. He admitted to attempting to steal from one more fund he managed to cover VQR fund redemption demands, the statement reads.
“The whole house of cards has been revealed, and Qin now awaits sentencing for his brazen thievery,” Audrey Strauss, the acting U.S. Attorney for Manhattan, said in the announcement.
Qin’s fraud relied on misrepresentations about his investment technique to lure millions of investor’s money into the fraudulent cryptocurrency companies, prosecutors stated. Qin, an Australian national, embezzled virtually all of the capital from the Virgil Sigma fund to pay for, amongst other personal costs, a penthouse apartment. He faces up to 20 years behind bars.
“Mr. Qin has accepted full responsibility for his actions and is committed to doing what he can to make amends,” his attorneys, Sean Hecker and Shawn Crowley said in a press release.
The U.S. Securities and Exchange Commission filed a parallel civil case against Qin last December.
Kyle James Lee – The AEGIS Alliance – This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.