Virgil Sigma Fund
A crypto hedge fund (with affiliate VQR Multistrategy Fund) that claimed ~$90M in assets and a market-neutral arbitrage strategy. Founder Stefan Qin pleaded guilty to securities fraud after draining investor capital; he was sentenced in 2021 to 7.5 years.
Also known as: Virgil Sigma Fund, VQR Multistrategy Fund, Virgil Capital, Stefan Qin
Summary
Virgil Sigma Fund LP, run by Australian founder Stefan He Qin, marketed a market-neutral cryptocurrency "arbitrage" strategy and at one point claimed assets exceeding $90 million. According to the SEC and SDNY, Qin had instead dissipated nearly all investor capital. [1][2]
Mechanism
Prosecutors said Qin misappropriated investor money for personal expenses and speculative investments from 2017, lied about the value, location, and status of the funds, and then sought to raid his second fund (VQR Multistrategy Fund) to satisfy redemption requests from Sigma investors — hallmarks of a Ponzi-style scheme. [1][2]
Outcome
Qin pleaded guilty to one count of securities fraud in February 2021 and, on September 15, 2021, was sentenced to 90 months (7.5 years) in prison and ordered to forfeit $54,793,532. A receiver was appointed to recover assets for investors. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.