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- Hydrogen CEO Michael Kane will serve 3 years and 9 months behind bars.
- Head of Engineering Shane Hampton will serve for two years and 11 months.
- Hampton and Kane have been accused of manipulating the HYDRO token’s worth.
Philadelphia residents Shane Hampton and Florida-based Michael Kane have been sentenced for manipulating the worth of Hydrogen Expertise’s native cryptocurrency, HYDRO. The 2 have been accused of orchestrating a scheme to defraud buyers.
As per a Division of Justice (DOJ) press launch, Hampton obtained a sentence of two years and 11 months in jail, whereas Kane obtained 3 years and 9 months. Nicole M. Argentieri, head of the DOJ’s Legal Division, famous that the 2 colluded and used a buying and selling bot to govern HYDRO’s worth for his or her profit, warning different fraudsters:
“This prosecution and the sentences imposed in the present day ought to function a warning: The Legal Division is not going to hesitate to make use of all instruments at its disposal—together with the federal securities legal guidelines—to guard the integrity of cryptocurrency markets.”
The DOJ said that, based on court docket paperwork, Kane, the co-founder and chief govt of Hydrogen, and Hampton, the Head of Monetary Engineering, employed Moonwalkers Buying and selling Restricted, a South African agency, to govern HYDRO’s worth. The buying and selling bot was used to “flood the market with pretend and fraudulent orders from October 2018 to April 2019.”
Moreover, the 2 Hydrogen executives used the bot to put $7 million in “wash trades” and $300 million in “spoof trades” to artificially inflate HYDRO’s worth, attractive buyers to buy the token in hopes of excessive returns.
The 2 males, together with their co-conspirators, generated $2 million in earnings over ten months.The opposite co-conspirators included Andrew Chorlian and Tyler Ostern, who pleaded responsible in Could 2023, whereas Kane pleaded responsible in November 2023. Hampton was convicted on February 7.
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