The US Securities and Exchange Commission obtained an order imposing an asset freeze and other emergency relief against crypto fund Virgil Capital LLC and its affiliated companies in connection with an alleged securities fraud.
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According to an announcement, the watchdog believes that the fraud was committed by Stefan Qin, an Australian citizen. The SEC also alleges that Qin is "actively attempting to misappropriate assets" from the VQR Fund and to attract new investments in the Sigma Fund.
Kristina Littman, Chief of the SEC Enforcement Division's Cyber Unit, claims the action is "an important step to protect investor assets and prevent further harm."
"Qin allegedly made false promises to lure investors and then continued his deception to conceal his misuse of investor funds," she added.
As iHodl earlier reported, Stefan Qin, founder of Virgil Capital, allegedly 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 wanted US Judge Lorna Schofield to order freezing $25 million in cryptocurrencies held by another Qin's fund.
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