SEC Wins Lawsuit Filed Against Hydrogen Technology Corporation

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By Degen Lipsa

The Hydrogen Technology Corporation and its CEO, Michael Ross Kane, were sued by the SEC in September 2017 for allegedly manipulating the price of HYDRO, the company’s proprietary cryptocurrency.

This lawsuit was filed due to allegations of price manipulation schemes, which were proven to be substantial.

Proven Manipulation Of Market Value

In order to execute fictitious trades utilising the HYDRO token, it is alleged that Kane utilised services provided by Moonwalkers Trading Ltd, a South African business, without a clear legal business objective.

Due to this, the price of HYDRO tokens skyrocketed well above their value, resulting in illegal profits of nearly $1.5 million for all parties involved.

In the complaint, Tyler Ostern, the CEO of Moonwalkers Ltd., was also named as a defendant. The SEC, however, did not place as much importance on his position as a hired party, and he soon reached a $41,000 settlement with them.

The destiny of Hydrogen Corp. and its CEO was finally decided by the courts on April 20th.

In accordance with court records, Michael Kane and Hydrogen Technology have one year to pay nearly $2.6 million in fines and disgorgement fees, the latter of which is the legal phrase for restoration of gains that were made illegally.

Currently, Hydrogen Technology Corporation owes the SEC over $1.5 million in disgorgement, over $244k in prejudgment interest, and over $1 million in civil penalties. For his coordination role in the fraud, Michael Ross Kane was also mandated to pay a separate civil penalty of nearly $260,000.

Banned From Crypto-Related Business Ventures

Kane was also instructed by the judge presiding over the case that he and any corporate organisations he may control are prohibited from taking part in future offerings of crypto assets, effectively permanently prohibiting him from engaging in business transactions involving cryptocurrency.

Kane may, however, use his own account(s) to purchase, trade, and invest in cryptocurrencies.

Defendants Hydrogen and Kane each are permanently restrained and enjoined from participating, directly or indirectly, including, but not limited to, through any entity controlled by defendants, in any offering of crypto asset securities, provided, however, that such injunction shall not prevent Kane from purchasing or selling crypto asset securities for his own personal account.

All HYDRO tokens in Kane’s personal accounts and the accounts his company controls must also be burned, or removed from the market in some other way.

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