Hydrogen Technology Corp. and its former CEO, Michael Ross Kane, have been ordered to pay $2.8 million in remedies and civil penalties to the Securities and Exchange Commission (SEC) for allegedly operating a price manipulation scheme involving its ERC-20 token, Hydro (HYDRO). The SEC had filed a complaint against the company and Kane in September 2022, claiming that Kane used Hydrogen’s market maker, Moonwalkers Trading Limited, to create a false appearance of robust market activity following the distribution of HYDRO tokens. Tyler Ostern, the CEO of Moonwalkers Trading Limited, agreed to settle the case for $41,000 soon after the complaint was filed. As part of the settlement, both Hydrogen and Kane are prohibited from selling any additional cryptocurrency until the Hydro tokens have passed the Howey test and received approval from the SEC. However, Kane is allowed to participate in the wider cryptocurrency market for personal gain.
