SEC Wins $2.8 Million in Lawsuit Against Hydrogen Technology

The seven-month-long lawsuit between the U.S. securities regulator and an alleged cryptocurrency price manipulator has been settled.

On April 20, a New York District Court judge ruled against Hydrogen Technology and its former CEO Michael Ross Kane in a lawsuit brought forward by the United States Securities and Exchange Commission (SEC) for the unlawful act of manipulating the volume and price of its ERC-token, Hydro (HYDRO).

In September, the SEC alleged that Kane and Moonwalkers CEO Tyler Ostern co-operated to “create the false appearance of robust market activity” after Hydro tokens were distributed via airdrops, direct-to-market sales and bounty programs all the way back in 2018.

The court has ordered Hydrogen Technology, parent company of under-fire market maker Moonwalks Trading Limited, to pay a sum of $2.8 million in remedies and civil penalties. $1.5 million of that regards “disgorged profits”, and the rest, which exceeds $1 million, constitutes a penalty.

Sources:

https://cointelegraph.com/news/sec-wins-2-8m-in-suit-over-alleged-crypto-token-price-manipulation

https://cryptopotato.com/sec-wins-lawsuit-filed-against-hydrogen-technology-corporation/

https://www.thecoinrepublic.com/2023/04/24/crypto-firm-hydrogen-tech-to-pay-sec-2-8m-fine-for-token-exploit/