The U.S. Securities and Change Fee (SEC) has accused the founding father of hedge fund Virgil Capital, which focuses on cryptocurrency arbitrage, of fraud.
- Stefan Qin, the 23-year-old founding father of Virgil Capital, has been accused by the SEC of “fabricated information” for failing to redeem $3.5 million in investments and making an attempt to withdraw $1.7 million in investor funds to repay Chinese language mortgage sharks, the SEC mentioned.
- On Tuesday, the SEC utilized to U.S. District Decide Lorna Schofield within the Southern District of New York for an emergency order to droop $25 million in digital property owned by one other fund managed by Qin.
- The SEC accuses Qin of fraud involving the Virgil Sigma Fund LP of New York and VQR Multistrategy Fund LP of the Cayman Islands.
- The hedge fund supervisor is being accused of altering spreadsheet monitoring investments at 39 cryptocurrency buying and selling platforms in 2019.
- Earlier this yr Qin falsely knowledgeable buyers seeking to redeem $3.5 million investments from their funds that the cash can be moved to the VQR Multistrategy Fund however the funds weren’t transferred, in keeping with the SEC.
- Qin additionally requested VQR head dealer Antonio Hallak to help with withdrawing $1.7 million from the fund, claiming he had borrowed cash from Chinese language mortgage sharks to spend money on the Sigma fund, in keeping with Reuters.
- Qin, whom the SEC mentioned is believed to be at present in South Korea, is ready to cooperate with the SEC and is “dedicated to making sure that no buyers are harmed,” mentioned his legal professionals, Reuters mentioned.
- The SEC is searching for an order completely restraining Qin from collaborating within the sale, issuance, buy or supply of any safety besides on his private account, a disgorgement of earnings and civil penalties.
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