The SEC has accused Australian citizen of fraudulent cryptocurrency investment funds through five of his firms
The U.S. Securities and Exchange Commission charged Australian citizen Stefan Qin with securities fraud involving cryptocurrency. Accordingly, Qin is accused of providing fraudulent investment funds through its five companies, most notably Virgil Capital.
The SEC has charged an Australian citizen with fraudulent cryptocurrency through 5 companies
According to a press release released by the SEC today, Qin has been selling fraudulent crypto fund shares since 2018 through five trading companies. Among the most prominent are Virgil Capital LLC and its affiliates.
The SEC says that Qin’s businesses have provided an algorithmic cryptocurrency trading fund that makes false promises and guarantees. It adds that, since July 2020, investors trying to buy back their fund have been told by Qin’s various businesses that their interest will be transferred to another fund.
The SEC believes those requests are yet to be fulfilled and Qin appropriated those funds. Furthermore, the SEC says that Qin is actively trying to appropriate assets from one of its existing funds and increase new investment revenue in another.
Qin also tried to use $ 1.7 million in investor funds to pay back Chinese lenders, according to full SEC court filings.
Today, court officials approved the SEC’s request to freeze $ 25 million worth of assets from Qin and his companies. The regulator has also sought permanent sanctions on stakeholders, dissatisfied with prejudiced interests and civil penalties.
Kristina Littman, Director of the Cyber Unit of SEC Enforcement, noted in the press release:
“This emergency action is an important step to protect investor assets and prevent further harm.”
The defendants in the case are Stefan Qin, Virgil Technologies LLC, Montgomery Technologies LLC, Virgil Quantitative Research LLC, Virgil Capital LLC, and VQR Partners LLC.
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