Stefan He Qin, the founder of two cryptocurrency hedge funds, has been sentenced to more than seven years in prison after United States authorities found that he had cheated investors out of $54 million.

A Wednesday statement from the U.S. Department of Justice (DoJ) announced that U.S. District Judge Valerie Caproni handed Qin a 90-month sentence for defrauding his investors out of $54 million.

The 24-year-old Australian owned and operated two cryptocurrency investment funds between 2017 and 2020 — Virgil Sigma and VQR, the latter of which was founded in February 2020.

Despite Virgil Sigma claiming to invest clients’ assets in cryptocurrency arbitrage strategies, the DoJ found that Qin had embezzled investor capital from the fund to pay for personal expenses, including food, rent and private investments, since 2017.

To avoid arousing suspicions among his investors, Qin created false account statements and bogus tax documents claiming the firm had…

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