Crypto Hedge Fund Fraudster Sentenced to 7 1/2 Years for Ponzi Scheme: Report

Australian national Stefan Qin bilked investors in his two hedge funds out of $90 million, according to authorities.

Sep 15, 2021 at 9:24 p.m. UTC
Updated Sep 16, 2021 at 1:31 p.m. UTC

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Stefan Qin, a 24-year-old hedge fund founder who federal prosecutors said defrauded more than 100 people out of roughly $90 million, was sentenced on Wednesday to 7 1/2 years in prison, according to a Bloomberg report.

  • In February, Qin pleaded guilty to lying about the performance of his Virgil Sigma Fund LP of New York, which he said exploited differences in cryptocurrency prices on different exchanges, and instead used his investors’ money to fund a lavish lifestyle.
  • Qin then attempted to cover his fraud by paying back Sigma investors by dipping into another fund he was operating, the VQR Multistrategy Fund LP of the Cayman Islands. He operated the two funds between 2017 and 2020.
  • In sentencing Qin, U.S. District Judge Valerie Caproni of the Southern District of New York called him “a potentially very dangerous person,” who “deliberately and consciously chose a path” to take advantage of his investors.
  • Qin was also fined $54.8 million, representing the proceeds traceable to his offenses.
  • Qin faced as much as 20 years in prison for his crimes.



Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Trending

1
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
2
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
3
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown