DOJ Charged 5 For Alleging Ethereum-Based Token “Hydro”
According to recent news, DOJ charged 5 individuals for market manipulation of the Ethereum-based token Hydro. Five people have gotten under the allegation of so-called market influence and manipulation of an Ethereum-based token known as Hydro.
A newly unsealed accusation has alleged five persons for making schemes and conspiring to influence the market of the so-called schemes involving the ERC-20 Hydro (HYDRO) token.
Key Takeaways:
- DOJ charged 5 individuals for market manipulation of the Ethereum-based token Hydro.
- The accused engaged in wash trading made high-value spoof orders, and sold their shareholdings for the illegal profit of around $2 million.
- DOJ charged the accused with conspiracy to commit securities price manipulation and wire fraud, with potential prison sentences of up to 20 years.
- Hydrogen Technology Corp and its former CEO were previously ordered to pay $2.8 million for non-criminal remedies in connection with the scheme.
However, the statement from the United States Department of Justice (DOJ) released on 24 April said that accusation has charged three people for making schemes for manipulating Hydro in the market. Additionally, charged two more people separately for participating in the scheme.
The DOJ alleged that from June 2018 to April 2019, Michael Ross Kane, the ex-CEO of Hydrogen Technology Corp., Shan Hampton, Hydrogen’s chief of financial engineering, and George Wolvaardt double-crossed market participants looking to the export and import of hydro tokens hydrogen issued.
Breaking Whale took to Twitter and made an announcement that the Department of Justice charged five people. These people claimed the Crypto price manipulation scheme, including the ERC-20 Hydro (HYDRO) token.
According to the accusation, the chief technology officer, Wolvaardt, for a market-making firm known as Moonwalkers Trading Limited made a software application called a trading bot that carried out several high-value spoof orders at the uncertain interval to make it clear that there was high demand for the token.
Moreover, the bot has expanded the trade by buying and selling large volumes of tokens from the same account. This practice is wash trading.
After the so-called artificial manipulation of the price of Hydro, DOJ declared that those who are conspiring along with their allies sold a large number of their shareholdings for the net amount of an approximate total of $2 million. The profit obtained by doing this is illegal profit obtained by dishonest means.
In addition to the above-mentioned, Tyler Ostern, the ex-CEO of the Moonwalkers, and a blockchain engineer from Hydrogen Technology Corpnamed Andrew Chorlian, were also accused of their involvement in the so-called scheme of market manipulation.
Global Crypto Agency announced on Twitter that DOJ charged 5 people for alleging the Ethereum-based token “Hydro” manipulation.
Kane, Hampton, and Wolvaardt are alleging of making conspiracies involving securities price manipulation and wire fraud.
However, if any of them is found guilty, they must face a punishment of five years in prison. The punishment is the conspiracy to commit securities price manipulation by any of them. For each other charges, stumbling 20-year imprisonment is the penalty.
Blockchain Italia announced on Twitter that five people claimed they manipulated the market for Hydro tokens. DOJ charged these people for this crime. Moreover, DOJ claims to lean an illegal profit worth $2 million.
Ostern and Chorlian are accused of one count of conspiracy to commit securities price manipulation and wire fraud. Moreover, if any of them is found guilty, they must face a punishment of five years in prison.
On 20 April, a suit against the Hydrogen Technology corporation and its ex-CEO, Michael Ross Kane, took to the New York District Court. The court Judge gave a verdict that they must pay $2.8 million as non-criminal remedies.