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Crypto Hedge Fund Fraudster Sentenced to 7 1/2 Years for Ponzi Scheme: Report
Australian national Stefan Qin bilked investors in his two hedge funds out of $90 million, according to authorities.
Stefan Qin, a 24-year-old hedge fund founder who federal prosecutors said defrauded more than 100 people out of roughly $90 million, was sentenced on Wednesday to 7 1/2 years in prison, according to a Bloomberg reporthttps://www.bloomberg.com/news/articles/2021-09-15/crypto-kid-fraudster-gets-7-1-2-years-for-ponzi-scheme-ktlwfwo2?sref=3REHEaVI.
- In February, Qin pleaded guilty to lying about the performance of his Virgil Sigma Fund LP of New York, which he said exploited differences in cryptocurrency prices on different exchanges, and instead used his investors’ money to fund a lavish lifestyle.
- Qin then attempted to cover his fraud by paying back Sigma investors by dipping into another fund he was operating, the VQR Multistrategy Fund LP of the Cayman Islands. He operated the two funds between 2017 and 2020.
- In sentencing Qin, U.S. District Judge Valerie Caproni of the Southern District of New York called him “a potentially very dangerous person,” who “deliberately and consciously chose a path” to take advantage of his investors.
- Qin was also fined $54.8 million, representing the proceeds traceable to his offenses.
- Qin faced as much as 20 years in prison for his crimes.
STORY CONTINUES BELOW
Nelson Wang
Nelson edits features and opinion stories and was previously CoinDesk’s U.S. News Editor for the East Coast. He has also been an editor at Unchained and DL News, and prior to working at CoinDesk, he was the technology stocks editor and consumer stocks editor at TheStreet. He has also held editing positions at Yahoo.com and Condé Nast Portfolio’s website, and was the content director for aMedia, an Asian American media company. Nelson grew up on Long Island, New York and went to Harvard College, earning a degree in Social Studies. He holds BTC, ETH and SOL above CoinDesk’s disclosure threshold of $1,000.
