The United States Security and Exchange Commission (SEC) has reportedly accused Australian citizen, Stefan Qin of securities fraud, in relation to cryptocurrency.
A press release published today by the SEC indicated that the cryptocurrency funds, that Stefan Qin sold were fraudulent. According to the SEC’s complaint, Qin and his entities have been defrauding investors in the Sigma Fund since at least 2018 by making material misrepresentations about the fund’s strategy, assets, and financial condition.
The report declared that “This emergency action is an important step to protect investor assets and prevent further harm,” said Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit. “Qin allegedly made false promises to lure investors and then continued his deception to conceal his misuse of investor funds.”
Qin has also attempted to use $1.7 million of investor funds to pay back Chinese lenders, according to the SEC’s full court filing.
The SEC’s complaint was filed in the Southern District of New York on Dec. 22, 2020
The SEC’s ongoing investigation is being conducted by Fitzann Reid of the San Francisco Regional Office and Amanda Straub of the Enforcement Division’s Cyber Unit. The litigation will be led by Susan LaMarca, Ms. Straub, and Ms. Reid, and the case is being supervised by Steven Buchholz and Ms. Littman of the Cyber Unit.
