Cryptocurrency
SEC Crackdown on Crypto Fraud
Wednesday. June 26 at 8:00 AM
1 min. readA former CEO, Michael Kane, of Hydrogen Technology Corporation, has been sentenced to 45 months in prison for securities fraud related to a crypto price manipulation scheme. This marks the first time a cryptocurrency has been deemed a security in a federal criminal trial. Kane's former colleague, Shane Hampton, received a 35-month sentence for similar crimes. The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Kane and the company, resulting in a $2.8 million penalty. Other executives involved in the scheme also faced legal consequences. The SEC's crackdown on crypto fraud extends to various firms, although it has decided not to classify Ether (ETH) as a security. This case highlights the government's efforts to protect the integrity of cryptocurrency markets and prosecute fraudulent activities within the industry.