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. A Sept. 15 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.
To avoid arousing suspicions among his investors, Qin created false account statements and bogus tax documents claiming the firm had been profitable for every single month from August 2016 except for March 2017.
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.
After regularly lying to his clients regarding the “value, location, and status of their investment capital” — with Sigma…