As per the latest reports, an alarming report has been shared by the cryptocurrency industry sector from Australia. The report reveals that Stefan He Qin has been sentenced for involvement in a cheating scheme connected with cryptocurrencies.
Stefan He Qin was reportedly the founder of a couple of hedge funds for cryptocurrencies. According to sources, He Qin has been sentenced to over seven years in jail. This is because He Qin was found involved in running a cryptocurrency scheme that was launched to cheat investors.
He Qin was the leading entity that continued cheating several investors and deprived them of a total of $54 million in the process. This information has been revealed by the authorities of the United States.
The data shows that the authority that has released the report related to the scam run by He Qin was the US Department of Justice (DoJ). The report was released by the DoJ on Wednesday, September 15, 2021.
The case against He Qin was being presided over by Valerie Caproni, the United States District Judge. The judge reportedly handed over a sentence to He Qin that was for 90months. The sentence has been given to He Qin for cheating investors through fraud and accumulating a large figure of $54 million in the process.
Stefan He Qin is a citizen from Australia and is 24-years of age. According to a report from the DoJ, He Qin was responsible for running two hedge funds for cryptocurrencies. He Qin reportedly did it during the time period from 2017 to 2020.
The names of the two hedge funds He Qin launched and managed were dubbed Virgil and VQR. He Qin had launched the Virgil Sigma hedge fund for cryptocurrencies back in 2017. On the other hand, he had launched the second hedge fund for cryptocurrencies in February of 2020.
During the prosecution process, He Qin claimed that the hedge fund he had launched was legitimately benefiting the investors for their investment. However, the Department of Justice claimed in its report that He Qin was just making things up in order to mislead the judge and the jury.
He Qin continued claiming that they kept giving users the profits and returns for the investments they made at the hedge fund. The department of Justice revealed that He Qin was involved in using the investments from the investors for personal expenses and luxuries.
He Qin was alleged of using the money from the investors for private investment, rent, food, and many more personal activities. The Department of Justice also revealed that He Qin had been doing it ever since he launched his first hedge fund back in 2017.
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