SEC obtains emergency asset freeze against crypto hedge fund amid fraud allegations

Legal • December 28, 2020, 12:58PM EST
Partner offers
The Block may may earn a commission if you use our partner offers, at no extra cost to you.

The Securities and Exchange Commission (SEC) has obtained an asset freeze order against quantitative trading firm Virgil Capital, according to a statement from the regulator.

The asset freeze is related to allegations of securities fraud filed December 22 against Virgil Capital's crypto trading fund, Virgil Sigma Fund. The SEC claims the fund's owner, Stefan Qin, has been knowingly defrauding investors of the Sigma Fund, using the investment proceeds for "personal purposes or for other undisclosed high-risk investments." 

The new order is to "prevent further harm," according to the Chief of the Enforcement Division's Cyber Unit, Kristina Littman. 

Virgil Capital reportedly manages $100 million in assets, and was accepting new investors for its waiting list as of April of this year. Qin founded the company in 2016, when he was 19 years old. 

TAGS
SEC

AUTHOR

Aislinn Keely profile picture Aislinn Keely

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.

See More
Connect on

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on

More by Aislinn Keely