The man who runs two illegal crypto funds and conned investors for 90 million in jail for 7 years
Stefan Qin, who ran two illegal crypto funds and defrauded investors of millions of dollars, will spend seven and a half years in prison.
Crypto fraudster gets seven years in prison for stealing $90M in a crypto Ponzi Scheme
According to a press release from the United States Department of Justice, Qin – will serve the next 90 months in federal prison for defrauding his client out of $90 million. The courts also ordered him to confiscate nearly $55 million from the embezzled money.
An Australian university, Stefan He Qin
The Australian was in charge of two cryptocurrency investment funds – Virgil Sigma and VQR as their headquarters were in New York. Both companies’ operational structure was to collect money from investors, which later to employ in arbitrage trading strategies. What’s more, they promoted themselves as market-neutral, meaning that the volatility of the digital market does not expose their clients to any risks.
According to marketing reports, Virgil Sigma had only one month without a profit – March 2017. Qin also regularly interacts with his clients, often bragging about the success of his investment funds. He even made it to the Wall Street Journal after Virgil Sigma delivered an annual return of 500% in 2017.
However, it all sounded too good to be true, and Qin’s investors soon discovered that his strategies weren’t much more than a disguised means for him to embezzle and make unauthorized investments with client funds.
The 24-year-old used the money for his purposes, such as services, dining, and renting a luxury penthouse in New York. Qin doesn’t stop there – he also uses a significant portion of investors’ capital to allocate to other non-cryptocurrency-related entities.
The investigation revealed that he received a seven-and-a-half-year prison sentence, and the court also ordered his investment funds to cease operations. In addition to this jail time, Qin will have to recover nearly $55 million in stolen funds.
While the court, as mentioned earlier, the ruling of more than seven years in federal prison may seem like a long time, it is not the most significant ruling ever made for crimes involving digital assets.
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