The US Securities and Exchange Commission (SEC) continues its pre-Christmas rampage as it has sued a 23-year-old Australian hedge fund founder for defrauding investors in his multi-million crypto arbitrage fund, Reuters reports.
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According to the watchdog, Stefan Qin, founder of Virgil Capital, fabricated records as he failed to redeem $3.5 million in investments and tried to withdraw $1.7 million of investments to pay off Chinese loan sharks. The SEC wants US Judge Lorna Schofield to order freezing $25 million in cryptocurrencies held by another Qin's fund.
Earlier this week, the SEC crashed the price of XRP by submitting a lawsuit against Ripple Inc., claiming that the company conducted $1.3 billion unregistered securities offering. The SEC says Ripple undertook distribution of the XRP tokens without registering offers and sales of XRP with the SEC.
Ripple's CEO Brad Garlinghouse says that classifying XRP as a security is like comparing oil to Exxon's stock.
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