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US Courtroom Sentences Cryptocurrency Hedge Fund Founder to 7.5 Years in Jail

US Court Sentences Cryptocurrency Hedge Fund Founder to 7.5 Years in Prison

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) mentioned that he “engaged in a scheme to steal belongings” from his hedge funds and defraud buyers.

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. 4 after the U.S. Securities and Trade Fee (SEC) filed a lawsuit in opposition to him in December final 12 months.

In response to 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 not too long ago, Virgil Sigma presupposed to have over $90 million beneath administration from dozens of buyers, together with many in the US,” the Division mentioned. “Till not too long ago, VQR had at the very least roughly $24 million beneath administration from buyers.”

The DOJ detailed:

Since 2017, Qin engaged in a scheme to steal belongings from Virgil Sigma and defraud its buyers. Fairly 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 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 within 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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