NEW YORK (AP) — An Australian man pleaded responsible Thursday to securities fraud for dishonest buyers of over $90 million by squandering cash they spent on his cryptocurrency fund, prosecutors stated.
Stefan He Qin, 24, entered the plea to a single depend of the fraud cost in Manhattan federal court docket. Authorities stated the fraud occurred from 2017 to 2020 as Qin operated the fund titled Virgil Sigma.
“Stefan He Qin drained nearly all the property from the $90 million cryptocurrency fund he owned, stealing buyers’ cash, spending it on indulgences and speculative private investments, and mendacity to buyers in regards to the efficiency of the fund and what he had accomplished with their cash,” U.S. Lawyer Audrey Strauss stated in a launch.
She stated Qin then tried to steal cash from one other fund he managed to fulfill the redemption calls for of the defrauded buyers within the former fund.
“The entire home of playing cards has been revealed, and Qin now awaits sentencing for his brazen thievery,” Strauss stated.
Prosecutors stated Qin cheated dozens of buyers, together with many in the USA.
They stated the fraud was revealed final summer season when Qin was having issue assembly redemption requests from buyers. Qin faces as much as 20 years in jail at a Might 20 sentencing.
Sean Hecker and Shawn Crowley, attorneys for Qin, stated in an announcement that their shopper “has accepted full accountability for his actions and is dedicated to doing what he can to make amends.”