SEC settles $2.8M Hydrogen Technology Corporation lawsuit
The SEC settled a seven-month lawsuit against Hydrogen Technology Corporation and its former CEO Michael Ross Kane for $2.8 million for manipulating crypto prices. The judge ordered Kane and the firm to pay 2.8M USD in remedial and civil fines. Disgorged earnings and penalties total 1.5 million USD. Kane agreed to pay 260,000 USD plus pre-judgment interest.
Hydrogen Makes $2M from Market Manipulation Scheme
September 2022 saw the SEC sue Kane. He used Hydrogen’s market maker Moonwalkers Trading Limited to manipulate Hydro’s ERC 20 token Hydro (HYDRO) price and volume.
The SEC stated that Kane and Moonwalkers CEO Tyler Ostern collaborated to create a misleading impression of substantial market activity when Hydrogen’s Hydro tokens were distributed in 2018 through airdrops, bounty programs, and direct-to-market sales. Ostern sold tokens in a manipulated market. Hydrogen made nearly $2 million.
Kane Hydrogen SEC Charges and Crypto Sales Banned
Kane and Hydrogen cannot defend SEC charges after the settlement. The arrangement is irrevocable. Kane and the corporation cannot sell any more crypto until the Hydro coins pass the Howey test and the SEC approves.Kane can still participate in the cryptocurrency market. He can trade digital currency for profit. This settlement helps hold crypto firms accountable for market manipulation and fraud. It shows the SEC will sue criminals.
This case should deter other companies and people from doing the same. It emphasizes crypto industry openness and fairness. This settlement illustrates that the SEC will hold crypto businesses accountable for fraud and market manipulation.
BPH Energy Invests in Clean Hydrogen Technologies Corporation
BPH Energy, an Australian oil and gas exploration and production firm, will invest in Clean Hydrogen Technologies Corporation (Clean Hydrogen) if shareholders approve. On June 21, 2022, BPH Energy and Advent Energy Limited, a direct interest investee, were permitted to subscribe to 8% and 2% of Clean Hydrogen’s shares, respectively. Clean Hydrogen, a Canadian firm, develops carbon-reducing hydrogen technologies. Advanced electrolysis and fuel cell systems for transportation, power generation, and industry are its technology.
According to a binding term agreement, BPH Energy and Advent Energy will subscribe for 10% of Clean Hydrogen’s fully paid shares. If ROFR is exercised, BPH Energy will own 16% of Clean Hydrogen. The ROFR allows the Purchasers to subscribe for an additional 10% of Clean Hydrogen’s shares on the same terms and conditions as the initial investment if the Vendor does not seek a Series A equity securities investment of at least US$3,000,000 by April 30, 2023, and if the Vendor determines that it needs at least US$1,000,000 for continued development and operations.
Clean Hydrogen has requested funds from BPH Energy and Advent Energy but not a Series A investment. If the ROFR is exercised, BPH Energy will invest US$800,000 and Advent Energy US$200,000 in Clean Hydrogen, giving them 16% and 4% stakes, respectively. BPH Energy invests in Clean Hydrogen to reduce carbon emissions. The investment will diversify BPH Energy’s business and position it in the hydrogen economy.
Hydrogen is essential to the low-carbon economy, making this investment vital. Hydrogen can power automobiles, generate electricity, and heat houses and buildings from renewable sources like wind and sun. Hydrogen fuel cells power transportation more efficiently and reliably than internal combustion engines. Hydrogen technology adoption has hurdles. Hydrogen production is costly. Steam methane reforming and electrolysis are energy-intensive and expensive ways of hydrogen synthesis. Hydrogen storage and distribution lack infrastructure. More research and development is needed to increase hydrogen production efficiency and cost and construct a strong storage and distribution system.
Finally, BPH Energy’s investment in renewable Hydrogen Technologies Corporation advances renewable energy technology and reduces carbon emissions. This investment could boost the hydrogen economy, but there are still obstacles to overcome before hydrogen can fully realize its clean energy potential.
