SEC Wins Cryptocurrency Manipulation Case Resulting in $2.8 Million in Fines

The US Securities and Exchange Commission (SEC) has concluded a seven-month-long investigation into the business, which was accused of manipulating bitcoin prices. Hydrogen Technology Corp. and its former CEO were fined $2.8 million for conducting a price-fixing conspiracy.

In a case filed by the Securities and Exchange Commission (SEC), the New York District Court decided against Hydrogen Technology Corporation and its ex-CEO Michael Ross Kane. As a consequence, they were fined $2.8 million in civil fines and remedies.

The sanctions include a $1.5 million disgorgement of illegal earnings and a penalty in excess of $1 million, plus prejudgment interest.

Hydrogen’s CEO, Michael Kane, has also agreed to pay an individual fine of about $260,000. The lawsuit, which lasted seven months, alleged that the company manipulated cryptocurrency prices. The ruling serves as a reminder that the SEC is actively pursuing those who engage in fraudulent practices within the cryptocurrency industry.

According to the SEC, Hydrogen and Kane manipulated the Hydro (HYDRO) token through market maker Moonwalkers Trading. Hydrogen and Kane’s Hydro tokens are banned from trading cryptocurrencies until the Howey test results are available. Kane will be able to personally buy and sell crypto assets.

“Price manipulation in assets” was cited as the main element of the lawsuit.

In September, the Securities and Exchange Commission (SEC) filed a complaint against Kane, accusing him of using Hydrogen’s market maker, Moonwalkers Trading Limited, to orchestrate a scheme that manipulated the volume and price of Hydrogen’s ERC-20 token, Hydro (HYDRO).

The SEC alleged that Kane and Moonwalkers CEO Tyler Ostern collaborated to fabricate the illusion of strong market activity following the distribution of Hydrogen’s Hydro tokens in 2018 through various means, such as airdrops, bounty programs, and direct-to-market sales. The pair’s alleged actions intended to mislead investors and artificially inflate the token’s value, creating a false sense of demand and market liquidity for Hydro (HYDRO).

The $2.8 million fines and other penalties issued on Hydrogen and Kane stem from a desire to bring people and enterprises under a regulatory umbrella in the rapidly evolving world of digital assets. This and related news will continue to arrive on a daily basis.

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