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The US Department of Justice sentenced two former Hydrogen Technology executives, Michael Kane and Shane Hampton, to prison for manipulating the price of the company's cryptocurrency, HYDRO, and defrauding investors.
Kane received 3 years and 9 months, while Hampton got 2 years and 11 months. They worked with Moonwalkers Trading Ltd. to create $7 million in fake trades via bots, profiting $2 million. This manipulation induced retail investors to buy HYDRO.
The case marked the first criminal trial recognizing cryptocurrency as a security and price manipulation as securities fraud.