Stefan He Qin, Wolf of Crypto Street, Pleads Guilty Over Securities Fraud

The founder of the $90 million cryptocurrency hedge fund has been charged with securities fraud. Stefan He Qin has pleaded guilty in the federal court.

Stefan He Qin Pleads Guilty

Stefan He Qin pleaded guilty to having stolen and disbursed almost all of his $90 million flagship hedge fund. He was also charged with the attempt to get more millions of dollars from another fund to repay the investors.

The United States Attorney for the Southern District of New York, Audrey Strauss as well as the Special Agent in Charge of the New York Field Office of Homeland Security Investigations, Peter C. Fitzburgh, have announced that the accused is charged with one count of securities fraud. With Qin pleading guilty in the Manhattan federal court, he is now just awaiting for his exact punishment and penalty, given by the court.

In the official statement, Qin is described as the founder of the Virgil Sigma Fund LP ("Virgil Sigma") and the VQR Multistrategy Fund LP ("VQR"), a pair of cryptocurrency hedge funds in New York, New York.

The crime he has admitted to was committed for years. He was reportedly stealing money from Virgil Sigma and in December 2020, he tried to steal money from VQR so he could repay what he originally stole from Virgil Sigma.

U.S. Attorney Audrey Strauss stated that, "Stefan He Qin drained almost all of the assets from the $90 million cryptocurrency fund he owned, stealing investors' money, spending it on indulgences and speculative personal investments, and lying to investors about the performance of the fund and what he had done with their money. Then, as he further admitted today, Qin attempted to steal money from another fund he controlled to meet redemption demands of the defrauded investors in the former fund. The whole house of cards has been revealed, and Qin now awaits sentencing for his brazen thievery."

READ MORE: Super Bowl 2021: Miller Lite Giving Away $8 To Battle Michelbob Ultra Head On

HSI Warns Fraudsters like Stefan He Qin

HSI Special Agent in Charge Peter C. Fitzhugh added to this account by explaining that Qin used both Virgil Sigma and VQR to fund for this extravagant lifestyle.

He further explained that Qin masterminded everything for years, making false promises to prey on investors and make them pour millions of dollars into cryptocurrency firms. The special agent reassured the public that its agency refuses to let more Qins perpetuate their unlawful actions.

"The HSI New York El Dorado Task Force, with our incredible law enforcement partnerships, are committed to aggressively pursue fraud in all forms, regardless of how elaborate and profitable these schemes appear," the special agent added. He also warned the public about being less gullible, especially when fraudsters now have more technological tools at their disposal to carry out their deceit.

"Qin pleading guilty to his deceitful acts, HSI and our partners remind those who attempt to defraud victims in any manner, your fraud will be uncovered and you will be brought to justice," the special agent added.

It can be recalled how earlier on, Qin tried to manouver himself out of the fraud he was suspected out of committing.

He falsely informed investors looking to redeem $3.5 million investments from their funds that the money would be moved to the VQR Multistrategy Fund but upon investigation, SEC found none of these investments were transferred.

It can also be remembered how Qin asked VQR head trader Antonio Hallak, to help with withdrawing $1.7 million from the fund, asserting that he made some laons from Chinese loan sharks just so he can invest in the Sigma fund, based on the report by Reuters.

READ MORE: Deutsche Bank Slays 2020 With Unexpected Earnings, Breaking Analysts' Loss Expectations