The Securities and Exchange Commission (SEC) <a href="https://www.sec.gov/news/press-release/2022-175#:~:text=The%20Securities%20and%20Exchange%20Commission,offers%20and%20sales%20of%20crypto" target="_blank" rel="nofollow noopener">filed charges</a> against The Hydrogen Technology Corporation, its former CEO, Michael Ross Kane, and Tyler Ostern, the CEO of Moonwalkers Trading Limited, a market-making company. The charges filed were for their participation in conducting the unlicensed offers and sales of cryptocurrency asset securities named "Hydro" and for committing a conspiracy to influence the trading volume and value of those securities, which generated more than $2 million for them.

According to the lawsuit by SEC, Kane and Hydrogen, financial technology business with headquarters in New York, established the Hydro token in January 2018 and publicly disseminated it via diverse methods.
<h2>Kane and Hydrogen Hired Moonwalkers</h2>
The complaint also claims that after delivering the token in different ways, Kane and Hydrogen contracted with Moonwalkers, a company located in South Africa, in October 2018. The negotiation with Moonwalkers was to employ its specialized trading software or <a href="https://www.cryptoknowmics.com/news/mev-bot-makes-1m-loses-everything-to-hacker-after-one-hour/" target="_blank" rel="noopener">bot</a> to establish the false appearance of active market activity for Hydro, which was then sold into the overinflated market on Hydrogen's behalf for revenue. Due to the defendant's alleged actions, Hydrogen reportedly made more than $2 million in profits.

Carolyn M. Welshhans, Associate Director of the SEC's Enforcement Division, stated that companies could not circumvent the federal securities laws by framing unauthorized offers and trades of their securities as prizes, remuneration, or other similar acts. He further claimed that, according to the enforcement actions, the SEC would uphold the rules that confine such unregulated fund-raising methods to safeguard <a href="https://www.cryptoknowmics.com/news/institutional-investors-undeterred-by-crypto-winter-state-street/" target="_blank" rel="noopener">investors</a>.
<h2>Accusations By SEC</h2>
Hydrogen, Kane, and Ostern were accused of breaking the securities laws' enrollment, anti-fraud, and unethical marketing provisions in the SEC's complaint, which was submitted to the federal district court in Manhattan. The <a href="https://www.cryptoknowmics.com/news/thai-securities-and-exchange-commission-accuses-zipmex-and-its-ceo" target="_blank" rel="noopener">Securities and Exchange Commission</a> is also asking for a permanent preliminary injunction, conduct-based injunctions, disgorgement with prejudgment interest, civil fines, and, in the case of Kane, an officer and director bar.

Ostern agreed to a judgment, subject to court approval, that permanently prohibits him from breaking these clauses and taking part in future securities offerings. Ostern has also consented to the imposition of a penny stock and collateral industry bar by administrative order.

SEC Files Charges Against Hydrogen Technology And Ex-CEO

SEC charged Hydrogen Technology Corporation, Michael Ross Kane, and Tyler Ostern for conducting the unlicensed offers and sales of crypto asset securities.

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

SEC Files Charges Against Hydrogen Technology And Ex-CEO

Top Picks