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

cybersecurity computer hacker with hoodie scaled

The founder of two cryptocurrency hedge funds in New York, Stefan Qin, has been sentenced to 7.5 years in prison and three years of supervised release. He is also ordered to forfeit about $55 million. The Department of Justice (DOJ) said that he “engaged in a scheme to steal assets” from his hedge funds and defraud investors.

Crypto Hedge Fund Founder Gets 7.5 Years in Jail

Stefan Qin, the founder of two cryptocurrency hedge funds in New York, has been sentenced to 7.5 years in prison, the U.S. Department of Justice (DOJ) announced last week.

Qin, a 24-year-old Australian national, founded the Virgil Sigma Fund and the VQR Multistrategy Fund, which claimed to have over $100 million dollars in investments. He pleaded guilty to one count of securities fraud on Feb. 4 after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against him in December last year.

According to the DOJ, Qin was sentenced Wednesday to 90 months in prison.

The Department of Justice explained that between 2017 and 2020, Qin owned and controlled the two cryptocurrency investment funds. “Until recently, Virgil Sigma purported to have over $90 million under management from dozens of investors, including many in the United States,” the Department said. “Until recently, VQR had at least approximately $24 million under management from investors.”

The DOJ detailed:

Since 2017, Qin engaged in a scheme to steal assets from Virgil Sigma and defraud its investors. Rather than investing the fund’s assets in a cryptocurrency arbitrage trading strategy as advertised, Qin embezzled investor capital from Virgil Sigma and used the funds for purposes other than the purported arbitrage trading strategy.

Qin also attempted to steal assets from VQR as Bitcoin.com News previously reported. The DOJ explained that Qin’s two cryptocurrency funds “have ceased operations and the liquidation and distribution of assets is being handled by a court-appointed receiver in the matter of S.E.C. v. Qin, 20 Civ. 10849,” adding:

Qin, 24, was also sentenced to three years of supervised release, and ordered to forfeit $54,793,532.

Do you think Qin should go to prison for 7.5 years? Let us know in the comments section below.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 68,114.25
ethereum
Ethereum (ETH) $ 3,755.77
tether
Tether (USDT) $ 0.998747
bnb
BNB (BNB) $ 593.55
solana
Solana (SOL) $ 167.64
staked-ether
Lido Staked Ether (STETH) $ 3,755.88
usd-coin
USDC (USDC) $ 0.999094
xrp
XRP (XRP) $ 0.520486
dogecoin
Dogecoin (DOGE) $ 0.159804
cardano
Cardano (ADA) $ 0.446579
the-open-network
Toncoin (TON) $ 6.48
shiba-inu
Shiba Inu (SHIB) $ 0.000026
avalanche-2
Avalanche (AVAX) $ 36.38
chainlink
Chainlink (LINK) $ 18.10
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,181.27
tron
TRON (TRX) $ 0.111363
polkadot
Polkadot (DOT) $ 7.03
bitcoin-cash
Bitcoin Cash (BCH) $ 466.27
uniswap
Uniswap (UNI) $ 10.88
near
NEAR Protocol (NEAR) $ 7.39
matic-network
Polygon (MATIC) $ 0.700018
litecoin
Litecoin (LTC) $ 84.44
pepe
Pepe (PEPE) $ 0.000014
internet-computer
Internet Computer (ICP) $ 12.19
fetch-ai
Fetch.ai (FET) $ 2.23
leo-token
LEO Token (LEO) $ 5.96
dai
Dai (DAI) $ 0.999778
wrapped-eeth
Wrapped eETH (WEETH) $ 3,905.92
ethereum-classic
Ethereum Classic (ETC) $ 29.96
aptos
Aptos (APT) $ 9.20
render-token
Render (RNDR) $ 10.16
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,709.21
hedera-hashgraph
Hedera (HBAR) $ 0.101322
dogwifcoin
dogwifhat (WIF) $ 3.44
cosmos
Cosmos Hub (ATOM) $ 8.55
arbitrum
Arbitrum (ARB) $ 1.14
kaspa
Kaspa (KAS) $ 0.138115
immutable-x
Immutable (IMX) $ 2.21
mantle
Mantle (MNT) $ 0.998080
filecoin
Filecoin (FIL) $ 5.79
crypto-com-chain
Cronos (CRO) $ 0.116738
stellar
Stellar (XLM) $ 0.105984
ethena-usde
Ethena USDe (USDE) $ 1.00
the-graph
The Graph (GRT) $ 0.306669
first-digital-usd
First Digital USD (FDUSD) $ 0.993797
blockstack
Stacks (STX) $ 1.94
arweave
Arweave (AR) $ 43.22
bittensor
Bittensor (TAO) $ 404.66
okb
OKB (OKB) $ 45.37
optimism
Optimism (OP) $ 2.48