According to the statement released today, the Securities and Exchange Commission (SEC) has received an asset freeze order against quantitative trading firm Virgil Capital. With its new move, the SEC now wants to stop the damage caused by the crypto trading fund.

 

SEC wants to prevent further harm

The asset freeze is related to the securities fraud allegations against Virgil Capital’s crypto trading fund Virgil Sigma Fund on December 22. The SEC claims that the fund’s owner, Stefan Qin, deliberately defrauded investors of the Sigma Fund by using investment income for “personal purposes or other undisclosed high-risk investments.”

According to Kristina Littman, Chief of the Enforcement Department Cyber ​​Unit, the new order has been implemented to “prevent further damage.”

It was reported that Virgil Capital managed assets of $ 100 million and accepted new investors for the waiting list as of April this year. Qin founded the company at the age of 19 in 2016 and attracted attention at that time.

The term of the new SEC Chair may be short

Former SEC Chairman Jay Clayton, who recently resigned after the case against Ripple, was replaced by Elad Roisman. Because Roisman has a positive attitude towards cryptocurrencies, he was enthusiastically welcomed by crypto fans.

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However, as we stated in our news dated December 26, Roisman’s term of office may be shorter than expected. The new President Joe Biden is expected to appoint his own president in early 2021.

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