The US Securities and Exchange Commission (SEC) has obtained an order to freeze assets and other emergency relief against crypto fund manager Virgil Capital over alleged securities fraud.

The steps, which are also imposed on the Virgil Capital’s affiliated units, are related to the   company’s cryptocurrency trading fund called Virgil Sigma Fund.

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The SEC claimed that Virgil Capital owner Stefan Qin and other entities defrauded investors in the Sigma Fund since at least 2018.

It added that the company misled the customers by using the proceeds for personal purposes or for other undisclosed high-risk investments instead of investing the money for cryptocurrency trading.

Furthermore, Virgil Capital allegedly told the investors seeking redemptions that the interests would be transferred to another Qin-controlled fund called VQR Multistrategy Fund.

Despite the commitment, made since at least July 2020, no funds were transferred and redemption requests continue to remain due.

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In a statement, SEC said: “The SEC’s complaint, filed in the Southern District of New York on December 22, 2020, charges Qin, Virgil Technologies, Montgomery Technologies, Virgil Quantitative Research, Virgil Capital, and VQR Partners with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

“The complaint seeks permanent injunctions, including conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties.”