Two Executives
Sentenced as US Recognizes Crypto
as a
Security For the First Time
Two executives from Hydrogen Technology were sentenced this week for their
roles in a sophisticated scheme involving cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта securities fraud.
This case marks the first instance where a cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта was officially
recognized as a security by a federal jury. It might set a legal precedent for
how securities laws apply to digital assets, providing a clearer framework for
both entrepreneurs and investors.
Hydrogen Technology Executives Will Face Prison Time
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Shane Hampton, 32, from Philadelphia, received a sentence of two years and 11
months. While his co-conspirator, Michael Kane, 39, from Miami Beach, was
sentenced to three years and nine months.
According to the US Department of Justice, the duo, along with other
co-conspirators, used sophisticated methods to manipulate the market price of
their company s cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта, HYDRO. Their tactics included the
employment of a trading bot , which generated fake orders on a major US
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта exchange, thereby inflating the HYDRO price artificially.
Read more: Crypto Scam Projects: How To Spot Fake Tokens
From October 2018 to April 2019, Kane, the CEO of Hydrogen Technology, and
Hampton, the Head of Financial Engineering, executed manipulative strategies.
These included approximately $7 million in wash trades and over
$300 million in spoof trades.
These deceptive maneuvers successfully misled investors into buying the HYDRO
token. Consequently, the conspirators made around $2 million in illicit
profits over just 10 months.
Principal Deputy Assistant Attorney General Nicole M. Argentieri emphasized
the severity of this case.
“In this case, for the first time, a jury in a federal criminal trial found
that a cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта was a security and that manipulating cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта
prices was securities fraud. This prosecution and the sentences imposed today
should serve as a warning: The Criminal Division will not hesitate to use all
tools at its disposal—including the federal securities laws—to protect the
integrity of cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта markets, Argentieri said .
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This case is part of a broader crackdown by US authorities on illicit
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта practices. In April, another significant sentencing occurred
involving Irina Dilkinska, former legal chief of OneCoin . She faced a
four-year prison term for her role in a massive pyramid scheme that exploited
millions.
Moreover, Changpeng Zhao, the former CEO of Binance• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Binance, also faced legal
consequences this year. On June 1, he began serving a four-month prison term
at the Federal Correctional Institution in Lompoc, California. Last year, Zhao
pleaded guilty to failing to implement an adequate anti-money laundering
program at Binance• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Binance.
Read more: Who Is Changpeng Zhao? A Deep Dive Into the Ex-CEO of Binance• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Binance
These developments signal increasing scrutiny and regulation of the
cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта industry by US law enforcement, which aims to safeguard
investors and maintain market integrity.
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