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

Legal • December 28, 2020, 12:58PM EST
The Block

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 SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

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

About Author

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.

More by Aislinn Keely