The 24-year-old Australian ethics spokesman was sentenced to 7 years in prison by the US for defrauding investors out of $ 54 million
Stefan He Qin, the founder of two crypto mutual funds, was sentenced to more than seven years in prison after US authorities found he had defrauded investors of up to $ 54 million.
Qin often shows off his house and car to attract investors
In one explain On September 15, the US Department of Justice (DoJ) announced that Judge Valerie Caproni Qin had been sentenced to 90 months in prison for fraudulent misappropriation of his property.
The 24-year-old Australian owned and operated two crypto mutual funds between 2017 and 2020 – Virgil Sigma and VQR, a VQR fund founded in February 2020.
Although the Virgil Sigma Fund claimed to be investing client assets in crypto arbitrage strategies, the DoJ found that Qin had been misappropriating funds since 2017 to cover personal expenses including real products, rent, and other personal investments.
In order not to arouse suspicion among investors, Qin prepared fake bank statements and tax documents, claiming the company has been profitable every month since August 2016, with the exception of August. The 3rd year 2017 was a loss.
After Qin frequently lied to clients about the “value, location, and condition of investment capital” to increase client confidence, Qin took money from the VQR fund to pay his investors.
Qin even went to CNBC to talk about ethics and share his success story
In December 2020, Qin ordered VQR’s main trader to cancel all positions in the fund and transfer the funds to him. Despite warnings that the move would harm VQR’s investors, the trader eventually followed the instructions and transferred the money to Qin.
This young man was arrested by police in April 2021.
Regulators around the world recently highlighted the growing prevalence of cryptocurrency fraud, with SEC chairman Gary Gensler pointing out gaps in protection that could pose a threat. How dangerous for investors?
“Investors may be less skeptical of opportunities that include something new or innovative, or they can get caught up in a fear of missing out (FOMO),” warns Gensler.
In May, the U.S. Federal Trade Commission (as of October 2020) reported investor losses of more than $ 80 million due to cryptocurrency fraud.
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According to Cointelegraph