The founder of the cryptocurrency hedge fund Stefan He Qin admitted that he had stolen $ 100 million from investors. The fraudster faces 20 years in prison.
I took from some and gave to others
A modern cryptocurrency fraudster, 24-year-old Australian Stefan He Qin, pleaded guilty to a $ 100 million fraud. The young entrepreneur created three hedge funds at once and transferred money from one organization to another to cover debts to investors.
Qin stole investors’ money from his Virgil Sigma Fund LP and tried to send it to his other fund, VQR Multistrategy Fund LP, in order to repay the investors, according to New York prosecutors. Qin also tried to steal money from another hedge fund, which he controlled, in order to cover the claims of VQR fund investors.
“Stefan He Qin is accused of defrauding investors. He claimed to have used a trading algorithm to take advantage of price differentials for a number of cryptocurrencies, ”Bloomberg reported.
According to prosecutors, Qin misrepresented his investment strategy in order to attract multimillion-dollar investments in fraudulent cryptocurrency schemes. Qin embezzled almost all the capital of Virgil Sigma Fund LP for personal expenses, buying an apartment in a penthouse. He faces up to 20 years in prison.
Qin admitted his guilt in the deed. Note that in December, the US Securities Commission (SEC) filed a parallel lawsuit against the citizen of Qin.
SEC opened several criminal cases against crypto projects
Since the beginning of the year, the Securities Commission (SEC) has initiated several criminal cases against the organizers of cryptocurrency projects at once. So, in January 2021, it became known that the SEC had sued Ripple for trading in unregistered securities, which, according to the regulator, are XRP tokens. The first hearings will take place on February 22, 2021.
And in early February, it became known that the SEC brought charges against three persons involved in the creation and promotion of fraudulent digital asset trading platforms Start Options and Bitcoiin2Gen. This was reported in an official statement from the SEC. The defendants include Christian Krstic, founder of Start Options and Bitcoiin2Gen, and John DeMarr, the main promoter of these companies in the United States.
According to the investigation, Krstic, DeMarr and Robin Enos created and disseminated deliberately false ICO Bitcoiin2Gen advertising from December 2017 to May 2018, offering investors to buy a B2G token. As a result of powerful advertising propaganda, investors invested about $ 11 million in the project.
Most likely, by the end of the year, the SEC will initiate several more criminal cases against cryptocurrency projects after checking the ICO, which were carried out between 2017 and 2018.
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