SEC freezes assets of Virgil Capital crypto hedge fund

The U.S. Securities and Exchange Commission (SEC) has secured the freezing of assets of the Virgil Capital cryptocurrency hedge fund and its subsidiaries amid alleged securities fraud.

The case involving the founder of Virgil Capital, Virgil Sigma Fund and VQR Multistrategy, Stefan Qin. In the SEC’s view, he spent client funds on personal needs and high-risk investments, and also attempted to transfer $1.7 million to pay off debts.

In the summer of 2020 Qin provided investors with fake documents allegedly showing a transfer of $3.5 million to the VQR Multistrategy fund. However, in reality this did not happen.

The head of the SEC’s Cyber Unit, Christina Littman, said the asset freeze would help “prevent further harm” to investors.

Earlier, on December 23, the Commission filed suit against Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen. The SEC contends that the company sold unregistered securities in the form of XRP tokens.

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