$55 million were stolen to pay for the culprit’s lavish lifestyle.
The founder of two now-defunct cryptocurrency hedge funds has been sentenced to seven and a half years in US prison for embezzling and making unauthorised investments with client funds. US District Judge Valerie Caproni found that Australian national Stefan He Qin, the founder of Virgil Sigma Fund LP and VQR Multistrategy Fund LP, siphoned away millions of dollars of investors’ funds to pay for his extravagant lifestyle. The prison sentence comes half a year after Qin was charged with security fraud by the Department of Justice. The Virgil Sigma fund once claimed to have over $90 million under management from dozens of investors. Virgil Sigma gained those funds from advertising to investors that it was a « market-neutral » fund, meaning it was not exposed to any risk from the price of cryptocurrency moving up or down.
