Stefan He Qin, Cryptocurrency Scam, New York 2024

Stefan He Qin, the 24-year-old founder of the $90 million Virgil Sigma Fund LP, a cryptocurrency hedge fund in New York, has been sentenced to 90 months in prison for his role in a $90 million cryptocurrency scam. Qin, who also founded the VQR Multistrategy Fund LP, had promised his investors a ‘market-neutral’ investment strategy, but instead used the funds for personal expenses, illiquid investments, and to make unauthorized investments with client money.

The scheme, which lasted from 2017 to 2020, left his beleaguered investors in the lurch for over $54 million. Qin’s brazen and wide-ranging scheme was exposed after he was unable to fulfill redemption requests from his investors.

U.S. Attorney Audrey Strauss said, ‘Stefan He Qin’s brazen and wide-ranging scheme left his beleaguered investors in the lurch for over $54 million, and he has now been handed the appropriately lengthy sentence of over seven years in federal prison.’

Qin was able to lure investors with promises of a safe and liquid investment, but instead used the funds for his own personal gain. He even went so far as to invest hundreds of thousands of dollars stolen from Virgil Sigma into a real estate investment.

The case against Qin is a stark reminder of the dangers of investing in cryptocurrency and the importance of doing your due diligence before handing over your hard-earned cash. Qin’s sentence serves as a warning to other would-be scammers that there will be consequences for their actions.

Qin’s scheme was exposed after he was unable to fulfill redemption requests from his investors. He was arrested and charged with one count of securities fraud, to which he pleaded guilty on February 4, 2021.

Qin’s sentence is a significant blow to the cryptocurrency community, which has long been plagued by scams and illicit activity. The case serves as a reminder that the government is committed to protecting investors and holding accountable those who engage in fraudulent activity.

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