Ex-fintech CEO sentenced to 3.75 years over price manipulation scheme
A federal judge in Florida recognized the HYDRO token as an investment contract qualifying as a security under SEC guidelines.
A Florida judge has sentenced Michael Kane, the former CEO of Hydrogen Technology Corporation, to roughly four years behind bars after a guilty plea.
According to a notice from the United States Justice Department, on June 24, a federal judge sentenced Kane to 45 months in prison for securities fraud related to a crypto price manipulation scheme. Shane Hampton, Hydrogen Technology’s former Head of Financial Engineering, received a sentence of 35 months for similar crimes.
“[F]or the first time, a jury in a federal criminal trial found that a cryptocurrency was a security and that manipulating cryptocurrency prices was securities fraud,” said Principal Deputy Assistant Attorney General Nicole Argentieri. “This prosecution and the sentences imposed today should serve as a warning: The Criminal Division will not hesitate to use all tools at its disposal — including the federal securities laws — to protect the integrity of cryptocurrency markets.”
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Author: Turner Wright
