Hydrogen to pay $2.8 million in SEC case over token price manipulation

Hydrogen Technology Corp. and its former CEO, Michael Ross Kane, will pay a $2.8 million penalty for manipulating the price of the cryptocurrency token Hydro (HYDRO).

On April 20, U.S. District Judge Lewis Kaplan вынес the corresponding decision in the SEC’s lawsuit, filed in September 2022.

We announced charges against The Hydrogen Technology Corporation, its former CEO, Michael Ross Kane, and CEO of Moonwalkers Trading Limited, Tyler Ostern, for unregistered offers, sales, and manipulation of crypto asset securities called “Hydro.”

— U.S. Securities and Exchange Commission (@SECGov) September 30, 2022

According to the SEC’s complaint, the scheme netted the company more than $2 million. Hydrogen issued the Hydro token in January 2018, distributing it via airdrop and direct payments to individuals in exchange for promotion.

In October 2018 the company hired Moonwalkers, a South African firm, to create a ‘false impression of market activity’ using specialized software. After that, Hydrogen sold the tokens at artificially inflated prices.

Moonwalkers’ CEO Tyler Ostern agreed to settle the SEC’s complaint for $36,750 and $5,118 in litigation costs without admitting guilt. He was also barred from participating in securities offerings in the future.

Earlier in March, the SEC secured a favorable verdict against John and Jonatina Barksdales in relation to their fraudulent Ormenus Coin scheme. They will pay $102 million.

In April the regulator reached an agreement with former Coinbase product manager Ishan Vahi in an insider-trading case.