In a court battle that lasted for months, the SEC has recently emerged victorious with a judgement against Hydrogen Technologies Corporation, a crypto firm, and its owner Michael Ross Kane. The judgement ordered the firm to pay an amount of $2.8 million to the SEC. This case was sparked in September 2022 as the SEC revealed irregularities in the distribution and promotion of its native token Hydro. An allegation of collusion with Moonwalker Trading Limited, whose CEO was Tyler Ostern, was also made.

The SEC claims that the company had hired Ostern's trading bot service to artificially create a "false appearance of robust market activity for Hydro." This resulted in them accumulating over $2 million in illegitimate profits. The judgement issued by the U.S. court entailed the complete disgorgement of the firm's $1.5 million net profits and payment of a penalty of $1.04 million. In addition, the company was ordered to pay an additional amount of $244.5k as interest charges. On the other hand, Michael Ross Kane was ordered to remit a figure of $260,2000, inclusive of $45.8k net profits and charges of $207,000 and $7, 300 as a civil penalty. The payment of damages by both the parties is to be made according to an installment plan.

The judgement is a reminder to all crypto firms regarding the importance of adhering to SEC regulations in order to avoid any complications or legal issues. The SEC’s strict position on the promotion of cryptocurrencies comes as the commission is looking to keep protect the interests of investors, maintain healthy market integrity, and safeguard from fraudulent activities. In future, the SEC is likely to have a firm stance on any violations of the law and irregularities in the crypto industry.



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