Director of a Financial Technology Company Sentenced to 3Year Imprisonment for Fraud

Florida judge sentenced former CEO Michael Kane of Hydrogen Technology to nearly four years in prison.
According to a statement by the U.S. Department of on February 24th, a federal judge was appointed to condemn Kane for securities fraud to a cryptocurrency price manipulation scheme, and he was sentenced to 45 months in prison Shane Hampton, former financial engineer at Hydrogen Technology, was also sentenced to 35 in prison on similar charges.
“This is the first time that a jury has found cryptocurrency security and its price manipulation as securities fraud in a federal criminal trial,” said Assistant Attorney Nicole Agarwal.
She added:
“This case and judgment should serve as a clear: the criminal division will strictly enforce federal securities laws to protect the integrity of the cryptocurrency.”
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The U.S. Securities and Exchange Commission (SEC) filed lawsuits against Kane andgen Technology in March 2022 for allegedly plotting schemes to manipulate the quantity and price Hydro (HYDRO) tokens.
In August 2023, a New York ordered Kane and the company to pay fines totaling $1 million. Around the same time criminal charges were brought against Kane and Hampton in the southern district of Florida.
Kane admitted guilt for conspiracy to manipulate security prices as well as three of “telegram-fraud.”
This criminal case is part of broader efforts by U.S authorities overseeing cryptocurrencies; where they consider cryptocurrencies as securities.