Unfortunately, the emerging field of cryptocurrency has encountered both sophisticated and large cryptocurrency scams. Stefan Qin, an Australian national, has just been sentenced to over seven years for operating a Ponzi scheme. The scam was disguised as a hedge fund named Virgil Sigma.
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The founder of both Virgil Sigma and VQR, Qin coined his market strategy as one that was “market neutral” and safe for investors. Having pled guilty to only one count of securities fraud, Qin finally faced the music with this sentence.
Virgil Sigma Fund LP (“Virgil Sigma”) and the VQR Multistrategy Fund LP (“VQR”) were a creation of cryptocurrency hedge funds based in New York. They claimed to have over $100 million dollars in investments, except they were operations where substantial money was being embezzled to make unauthorized investments with clients’ funds. Failing to consider that “numbers don’t lie,” the scheme caused…