Tag Archives: Admits

The 24-year-old founder of 2 crypto hedge funds overseeing $100 million admits to fraud | Currency News | Financial and Business News

  • A 24-year-old founder of two cryptocurrency hedge funds pleaded guilty to securities fraud on Thursday.
  • The two hedge funds had more than $100 million in assets, the Department of Justice said.
  • He embezzled almost all of one’s capital to pay for personal expenses including a penthouse apartment.
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The founder of a cryptocurrency hedge fund that claimed to use a trading algorithm to capitalize on price differences in several crypto assets pleaded guilty to securities fraud on Thursday, the Department of Justice said.

Stefan He Qin, a 24-year-old Australian national, admitted in court that he had embezzled nearly all the assets raised in his Virgil Sigma Fund, which along with his VQR Multistrategy Fund had more than $100 million in assets, the DOJ said.

Qin used the assets to pay for personal expenses including a penthouse apartment.

Prosecutors said Qin stole money from investors in Virgil Sigma, then tried to pay them back with the assets raised from investors in his second multistrategy fund.

“The whole house of cards has been revealed, and Qin now awaits sentencing for his brazen thievery,” Audrey Strauss, the acting US attorney for the Southern District of New York, said in a statement.

For years Qin made misrepresentations and false promises to lure new investors into his funds. Marketing materials for Virgil Sigma claimed that the strategy had been profitable every month since August 2016 except for March 2017, the DOJ said.

Qin faces a sentence of as long as 20 years in prison.

In a statement, Qin’s lawyers said he “has accepted full responsibility for his actions and is committed to doing what he can to make amends.”

Read more: Market wizard Michael Kean has averaged a 29% annual compounded return since starting his company 10 years ago. He shares his unique stock-picking strategy and 4 pieces of advice for anyone who wants to become a trader.

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Philly Fighting COVID CEO Andrei Doroshin Admits to Giving Vaccines to Friends – NBC10 Philadelphia

The 22-year-old CEO of a company once working with the City of Philadelphia to distribute coronavirus vaccines but now embroiled in controversy admitted that he took some vaccines home with him and injected his friends.

Andrei Doroshin made the confession Thursday on the TODAY Show in what was his first TV interview since the fallout of the scandal involving Philly Fighting COVID, a group that once injected city-issued vaccines. The city has since cut ties after the group failed to disclose that it recently became a for-profit company, after collecting the personal information of thousands of residents.

Doroshin defended his decision to inject his friends, despite not being a registered nurse. He told TODAY’s Stephanie Gosk that he administered four doses which had been left over and were about to expire. Doroshin maintained he and his group made calls looking people at high risk who qualified for a shot but could not find anyone.

“I stand by that decision. I understand that I made that mistake. That is my mistake to carry for the rest of my life, but it is not the mistake of the organization,” Doroshin said.

City health officials had said Wednesday that an audit of vaccine doses given to Philly Fighting COVID found “no evidence that vaccine was wasted, stolen, or otherwise misused.”

The Philadelphia Department of Public Health’s decision to partner with PFC, a 9-month-old startup, despite having a litany of other options in the hospital-heavy city, was surprising from the get-go.

“Why we have to rely on an organization that is less than nine months old, started by students primarily to produce PPE, and not by organizations that have a vetted track record around helping people address COVID-19, is beyond me,” Councilwoman Katherine Gilmore Richardson said. “I’m flabbergasted, I’m dismayed and I’ll never understand how this happened.”

The group never signed a contract with the city before receiving vaccine doses, because, health department spokesman James Garrow said, the city did not receive federal funds to distribute the doses. Instead, the city requires only that organizations fill out an interest form before receiving and distributing the vaccine, he said.

The city has declined to make public the registration form that Philly Fighting COVID filled out to begin getting doses.

Initially, the group was testing for the coronavirus and set up shop at the Pennsylvania Convention Center, where they ran vaccination clinics and injected nearly 7,000 people. But in recent weeks, the department of health said PFC abruptly stopped testing for the virus, as well, a key component of the partnership.

As recently as Jan. 8, the city actively directed people toward the group’s website to “pre-commit” to being notified when they qualified for a vaccine. However, the group only recently posted a privacy policy, following concerns about people’s personal information being sold off, which Doroshin said has not happened and would violate HIPAA rules.

The city has since set up its own website and is encouraging people to sign up there instead.

PFC also started billing instance companies for the vaccines, despite receiving them for free. Doroshin defended that decision, as well, claiming that the donations the group was receiving were not enough to cover the costs of running the vaccination clinics.

However, reporting from WHYY and Billy Penn has since indicated Doroshin embellished his resumé and always planned to make a profit. A former volunteer at PFC told the news outlets that Doroshin openly bragged about using the opportunity to become a millionaire.

The group has also come under scrutiny for other allegedly shoddy practices.

Katrina Lipinsky, a registered nurse and former PFC volunteer, told NBC10 she found it “unusual” that the group didn’t ask to see her credentials before allowing her to administer vaccines.

It’s now unclear if Doroshin, who says he has recently received death threats, will face any criminal charges. Philadelphia District Attorney Larry Kraner and Pennsylvania Attorney General Josh Shapiro are looking into the matter.

Several Philadelphia City Council members are also calling for hearings into the partnership between the city and the group.



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Madison Cawthorn: GOP congressman who voted to overturn election results admits 2020 race not fraudulent

The freshman congressman made the comments to CNN’s Pamela Brown when pressed about his lingering views on the November election results.

Cawthorn was one of more than 120 House GOP members who voted to sustain the objection to electoral votes from Arizona and Pennsylvania earlier this month when Congress met to to certify President-elect Biden’s victory.

“Yes, I think I would say that the election was not fraudulent. You know, the Constitution allowed for us to be able to push back as much as we could and I did that to the amount of the constitutional limits that I had at my disposal. So now I would say that Joseph R. Biden is our president,” he added.

There have been no credible allegations of any issues with voting that would have impacted the election, as affirmed by dozens of state and federal courts, governors, state election officials and the departments of Homeland Security and Justice. And not one of the Republican officeholders objecting to Biden’s victory have objected to Trump’s wins, or in some cases their own wins, on the same day.

Since Biden’s inauguration, Cawthorn has signed onto a letter along with 16 other GOP House freshmen, saying they look forward to working with Biden. Notably, Cawthorn is the youngest member of Congress in modern history, according to US House records, at just 25 years old.

“So when I contested to the election, that was within the constitutional guidelines that the framers had set up. But after I’ve done that and the electors and the delegates from each state elected Joe Biden as our president, I respect the office. He is my president, and I want to work with him to make sure that we can bring some meaningful change to the American people,” Cawthorn said.

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Microsoft Admits It Messed Up and Axes Xbox Live Price Hike

Microsoft’s Xbox logo is seen during the worldwide release of the Xbox Series X gaming console at an electronics store in Tokyo on November 10, 2020.
Photo: Charly Triballeau / AFP (Getty Images)

On Friday, Microsoft announced that it was going to raise prices for Xbox Live Gold during a pandemic, a statement that rightfully ignited anger among Xbox fans. Just a few hours later, Microsoft furiously backtracked and said it had “messed up.” No price hikes would be coming at this time, the company said. It addition, it was throwing in free multiplayer for free-to-play games, too.

In an update to its original blog posted just before midnight on Friday, Microsoft recognized that multiplayer is a critical part of gaming and said it had “failed to meet the expectations” of players who use multiplayer every day. It’s not like it’s easy to skip out on Xbox Live Gold, which is required to play games online on Xbox consoles. The move would have increased the cheapest option for a one-year membership from $60—which can currently still be bought from stores like GameStop and Amazon—to $120. Ouch.

In an apparent effort to appease angry and disappointed players, Microsoft said it would no longer require players to have an Xbox Live Gold membership to play multiplayer for free-to-play games, such as Fortnite or Call of Duty: Warzone. For comparison’s sake, before this announcement, Microsoft was the only major platform that did not allow players to use multiplayer for free on free-to-play games, the Verge reported.

“We messed up today and you were right to let us know. Connecting and playing with friends is a vital part of gaming and we failed to meet the expectations of players who count on it every day. As a result, we have decided not to change Xbox Live Gold pricing,” Microsoft said in its update. “We’re turning this moment into an opportunity to bring Xbox Live more in line with how we see the player at the center of their experience. For free-to-play games, you will no longer need an Xbox Live Gold membership to play those games on Xbox.”

Microsoft did not specify when free multiplayer would come for free-to-play games, only that it was working to do so “as soon as possible” over the next few months.

In terms of pricing for Xbox Live Gold, existing members will stay at their current price point for renewal. New and existing members can pay $9.99 for one month, $24.99 for three months, $39.99 for six months, and $59.99 for retail 12 months, per the company.

It wasn’t hard to deduce that the company’s proposed price increase wouldn’t be taken very well. First off, it’s proposing this during a pandemic, which has benefitted its gaming division. Second, it didn’t even bother to explain why it was increasing the price. The only inkling of a reason it gave was that it would “continue to invest” in the Xbox community and that in many markets, the price of Xbox Live Gold hadn’t changed in more than 10 years.

“Periodically, we assess the value and pricing of our services to reflect changes in regional marketplaces and to continue to invest in the Xbox community; we’ll be making price adjustments for Xbox Live Gold in select markets,” the company said in its original blog post.

Microsoft’s now axed price hike was seen by many as an effort by the company to nudge players into switching over to its Game Pass Ultimate service, which gives members access Game Pass, a service with a Netflix-like library of games, and Xbox Live Gold, among other perks, for $14.99 per month. The deal for Game Pass Ultimate is better than paying for Xbox Live Gold or Xbox Game Pass on their own and would end up making Microsoft more money in the long run.

As noted by Polygon, however, not everyone can afford to buy Game Pass Ultimate, and they shouldn’t be forced into it just to put more money into Microsoft’s pockets. Thankfully, now they won’t have to, and they can celebrate that fact by playing multiplayer on free-to-play games in the near future.

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