The Australian man admitted to cheating on $ 90 million investors from two crypto funds in the US.




An Australian citizen stated that he defrauded investors for more than $ 90 million by taking the money they invested in New York-based cryptocurrency funds.

Twenty-four-year-old Stefan He Qin challenged a single point of a securities fraud charge in a federal court in Manhattan on Thursday (February 4th).

According to the United States New York Southern District Attorney’s Office, the fraud occurred from 2017 to 2020 because it operated the fund called Qin Virgil Sigma. US Attorney Audrey Strauss said in a statement:

‚ÄúStefan He Qin emptied almost all assets from his $ 90 million cryptocurrency fund, stole investors’ money, spent it on indulgence and speculative personal investments, and lied to investors about the fund’s performance and what it did.

He added that Qin later tried to steal money from another fund he controlled, the VQR Multistrategy Fund, to meet the redemption demands of fraudulent investors in Virgil Sigma.


Most of the investors are US citizens

Most of the defrauded investors were US citizens, and Qin could face up to 20 years in prison on May 20.

Virgil Sigma claimed to have implemented a strategy to profit from arbitrage opportunities in the cryptocurrency markets. It used a trading algorithm to exploit the price differences of a number of crypto assets, including Bitcoin, on up to 40 different exchanges around the world, including three located in the US.

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Qin interviewed the Wall Street Journal in October 2018 when he announced how arbitrage trading bots work.


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