Two executives of fintech firm Hydrogen Know-how have obtained jail time for his or her position in inflating the agency’s cryptocurrency, HYDRO.
In an announcement, the U.S. Division of Justice (DOJ) says that Hydrogen Know-how co-founder and CEO Michael Kane of Miami Seaside, Florida and Head of Monetary Engineering Shane Hampton of Philadelphia, Pennsylvania had been sentenced for orchestrating cryptocurrency securities fraud and wire fraud schemes.
The 2 males are accused of hiring South African software program assisted market making agency Moonwalkers Buying and selling Restricted to inflate the value of HYDRO on a US-based crypto alternate utilizing a buying and selling bot that flooded the market with faux and fraudulent orders between October 2018 and April 2019.
The duo and their conspirators then executed roughly $7 million in wash trades and $300 million in spoof trades via the bot and ultimately profited roughly $2 million from promoting HYDRO.
The DOJ says the case is the primary felony jury trial that discovered cryptocurrency to be a safety and manipulating cryptocurrency costs is a securities fraud.
“The jury unanimously discovered that the defendants’ gross sales of HYDRO constituted funding contracts, making the token a safety below federal securities legislation. Hampton’s case was the primary felony jury trial wherein a cryptocurrency was discovered to be a safety.”
Kane was sentenced to a jail time of three years and 9 months whereas Hampton will spend two years and 11 months behind bars.
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