The 24-year-old Australian national – Stefan He Qin – will spend the next 90 months in federal prison for defrauding his customers out of $90 million. The courts also ordered him to forfeit nearly $55 million from the embezzled money.

The Road to Prison

According to a press release from the United States Department of Justice, Stefan Qin received a prison sentence for seven and a half years after stealing nearly $90 million from his clients.

The Australian was in charge of two cryptocurrency investment funds – Virgil Sigma and VQR as their headquarters were in New York. Both companies’ operational structure was to collect money from investors, which later to employ in arbitrage trading strategies. What’s more, they promoted themselves as “market-neutral,” meaning that the volatility of the digital market does not expose their clients to any risks.

Per the marketing reports, Virgil Sigma has had only one month where it did not register profits – March 2017. Qin was also in constant relation with his customers, often bragging about the success of his investment funds. He even reached the Wall Street Journal pages after Virgil Sigma had yielded an annual return of 500% in 2017.

However, it all sounded too good to be true, and “Qin’s investors soon discovered that his strategies weren’t much more than a disguised means for him to embezzle and make unauthorized investments with client funds.”

The 24-year-old actually used the money for…

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