GetBlock Magazine - What happened? Former top managers of the fintech company Hydrogen Technology Corporation received prison sentences for fraud with the HYDRO cryptocurrency. A Florida court sentenced co-founder and ex-CEO Michael Caine to 45 months in prison; former head of financial engineering Shane Hempton received 35 months in prison.
Statement from the Ministry of Justice
What else is known? According to the conclusion of the US Department of Justice, the defendants and their accomplices deceived investors by using a trading bot to manipulate the rate of their own company’s cryptocurrency. It is noted that in this case, for the first time, the jury recognized cryptocurrency as a security, and the manipulation of its price as security fraud.
Prosecutors said they “will not hesitate to use all available tools, including federal securities laws, to ensure the fair functioning of cryptocurrency markets.”
Co-conspirators Andrew Chorlian and Tyler Austern pleaded guilty to similar charges in May 2023 and have already been convicted.
