US Court docket Sentences Cryptocurrency Hedge Fund Founder to 7.5 Years in Jail – Regulation Bitcoin Information

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) stated that he “engaged in a scheme to steal property” 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 Alternate Fee (SEC) filed a lawsuit in opposition to him in December final 12 months.

Based on 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 just lately, Virgil Sigma presupposed to have over $90 million below administration from dozens of buyers, together with many in america,” the Division stated. “Till just lately, VQR had not less than roughly $24 million below administration from buyers.”

The DOJ detailed:

Since 2017, Qin engaged in a scheme to steal property from Virgil Sigma and defraud its buyers. Somewhat than investing the fund’s property in a cryptocurrency arbitrage buying and selling technique as marketed, Qin embezzled investor capital from Virgil Sigma and used the funds for functions apart from the purported arbitrage buying and selling technique.

Qin additionally tried to steal property from VQR as Information beforehand reported. The DOJ defined that Qin’s two cryptocurrency funds “have ceased operations and the liquidation and distribution of property 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 3 years of supervised launch, and ordered to forfeit $54,793,532.

Do you suppose Qin ought to go to jail for 7.5 years? Tell us within the feedback part beneath.

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