The U.S. Securities and Exchange Commission has sued a 23-year-old Australian hedge fund founder in Manhattan federal court for allegedly defrauding investors in his $92.4 million cryptocurrency arbitrage fund.
Stefan Qin, founder of Virgil Capital, allegedly fabricated records, failed to redeem $3.5 million in investments and sought to withdraw $1.7 million in investor funds to pay off Chinese loan sharks, the SEC said in the lawsuit filed on Tuesday. The SEC has asked U.S. Judge Lorna Schofield for an emergency order freezing $25 million in digital assets held by another Qin-controlled fund.
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