The Securities Exchange Commission (SEC) has won a lawsuit against a firm alleged to have committed crypto token price manipulation. This comes at a time of increasing regulation in the crypto market.
And speaking of regulation, the HedgeUp (HDUP) token looks ahead of the curve.
SEC wins price manipulation lawsuit
The United States Securities Exchange Commission (SEC) has won a lawsuit against Hydrogen Technology Corporation and its former CEO Micheal Ross Kane for allegedly engaging in crypto price manipulation.
On April 20, a New York District Court Judge ruled against the corporation and ordered them to pay a $2.8 million fine. The ruling put to an end a seven-month-long battle that started in September when the SEC filed a complaint against Hydrogen and its CEO.
The complaint alleged that Kane used Moonwalkers Trading Limited, Hydrogen’s market maker, to conduct a scheme that manipulated the price of its token, Hydro (HYDRO). According to the SEC, Kane and Moonwalkers’ CEO, Tyler Ostern, conspired to make it look as though the token was performing better than it was.
The SEC claims that Ostern sold Hydro tokens in an “artificially inflated market.” This was done after the distribution of HYDRO through bounty programs, airdrops, and direct-to-market sales and resulted in Hydrogen making more than $2 million in net profits.
In the ruling, the judge ordered Hydrogen and Kane to pay $2.8 million in remedies and civil penalties. The sum includes $1.5 million for gains made from unlawful conduct. Kane was also ordered to pay $260,000 in individual fines.
Hydrogen Technology Corporation and Kane are prohibited from selling any additional crypto until HYDRO passes the Howey test. This is a legal test used to determine whether a transaction can be considered a security under federal law.
HDUP token ahead of the curve for regulation
Crypto regulation has been a major topic in recent times. In the US, major stakeholders continue to call for clearer regulation while the SEC chairman argues that crypto markets suffer more from a lack of regulatory compliance than regulatory clarity.
In the rest of the world, many countries are working on developing regulatory frameworks for crypto. The European Parliament recently passed the Markets in Crypto-Assets (MiCA) that seeks to regulate cryptocurrencies in EU member countries.
Overall, these efforts put the crypto market in an interesting position. While older, more established projects will have a hard time adjusting to upcoming regulations, new crypto projects like HedgeUp (HDUP) are better placed to move along with the new rules as they’re being developed.
HedgeUp (HDUP) is a Web3 project that’s building an investment platform that will allow people to easily invest in alternative assets like precious metals, valuable jewelry, rare artwork, and more. The platform, which will initially be built on Ethereum, will be available to people from different jurisdictions all over the world in line with local laws.
HedgeUp’s token, HDUP, is currently in presale. Interested investors can get the token for a discounted price of $0.013.
Click the links below for more information on HedgeUp (HDUP)
Telegram Link: https://t.me/HedgeUpChat
Official Website: https://hedgeup.io
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