News

The SEC Charged Hydrogen And Its Former CEO With Accusations Of Market Manipulation

The Securities and Exchange Commission (SEC) has charged The Hydrogen Technology Corporation, Michael Ross Kane, former CEO, and Tyler Ostern, CEO of Moonwalkers Trading Limited, for selling unregistered “crypto asset securities” of Hydro. The SEC further claims that the defendants conducted a scheme to influence the Hydro trade.
The SEC Charged Hydrogen And Its Former CEO With Accusations Of Market Manipulation 3

According to the SEC complaint, Kane and Hydrogen established their Hydro token in January 2018 and subsequently publicly disseminated the token through different mechanisms, including an airdrop, bounty programs, employee pay, and direct sales on trading platforms.

Not stopping there, CEO Michael Kane was also accused of hiring market maker Moonwalkers as a token price, creating FOMO in the community.

According to the SEC, Hydrogen’s actions constitute both market manipulation and illegal, unregistered securities offering, whether in the form of airdrops or rewards. Carolyn M. Welshhans, Associate Director of the SEC’s Enforcement Division, commented on the enforcement action:

“Companies cannot avoid the federal securities laws by structuring the unregistered offers and sales of their securities as bounties, compensation, or other such methods. As our enforcement action shows, the SEC will enforce the laws that prohibit such unregistered fund-raising schemes in order to protect investors.”

SEC chairman Gary Gensler

The SEC has filed a complaint in federal district court in Manhattan. The charges allege that Hydrogen, Kane, and Ostern violated the securities laws’ provisions governing registration, antifraud, and market manipulation, and seek permanent injunctive relief, conduct-based injunctions, disgorgement with prejudgment interest, civil penalties, and, in the case of Kane, an officer and director bar.

Ostern has consented to a judgment, subject to court approval, permanently enjoining him from violating these provisions and participating in future securities offerings and ordering him to pay $36,750 in disgorgement and $5,118 in prejudgment interest, with civil monetary penalties to be determined at a later date by the court. Ostern has also consented to an administrative order that would impose a collateral industry and penny stock bar.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

33 minutes ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

2 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

2 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

2 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

4 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

4 hours ago

This website uses cookies.