The U.S. Department of Justice announced Wednesday that Stefan He Qin, the founder of two cryptocurrency-focused hedge funds who pled guilty to securities fraud in February, has been sentenced to 90 months in prison for his actions.
Qin’s funds were called Virgil Sigma and VQR. Both were supposed to offer investors a way to profit off the crypto market that “was not exposed to any risk from the price of cryptocurrency moving up or down and therefore provided a relatively safe and liquid investment.”
Those claims didn’t seem to attract much scrutiny; the DOJ noted that The Wall Street Journal actually profiled Qin in 2018 to celebrate his fund’s apparent success. But U.S. Attorney Audrey Strauss said in a statement that Qin’s funds were actually devoted to his personal gain rather than solid financial returns for investors: