SEC Emergency Asset Freeze and Virgil Capital

Today, the Securities and Exchange Commission obtained an emergency action that imposed an asset freeze and other emergency relief against Virgil Capital LLC and its affiliates. The alleged securities fraud is in connection with their flagship cryptocurrency trading fund, Virgil Sigma Fund LP, claiming that the CEO, Stefan Qin, has been making material misrepresentations about the fund's strategy, assets, and financial condition since 2018. Instead of being solely used for cryptocurrency trading based on a proprietary algorithm, investors' money was used for personal purposes or other undisclosed gih-risk investments.

"This emergency 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." - Kristina Littman, Chief of the SEC Enforcement Division's Cyber Unit

Check out the official SEC press release, here.