The Hydrogen cryptocurrency project was under investigation by the US Securities and Exchange Commission (SEC) which has now been concluded by the New York District Court.
The case was initiated based on a complaint against Hydrogen for fraud.
As per the ruling, the CEO of Hydrogen Technology, Michael Kane, was found guilty of manipulating the price of the Hydro token to make a profit.
The investigation revealed that Kane used his connections with the market maker Moonwalkers Trading to manipulate the price and volume of the Ethereum-based Hydro token.
In a statement, the SEC stated that they believe Michael Kane and Tyler Ostern, CEO of Moonwalkers Trading Limited, manipulated the price of Hydro.
The court has ordered Hydrogen Technology to pay $1.5 million in “wrongful proceeds” and a fine of over $1 million. Moreover, Kane was also personally fined $260,000.
It was previously reported that investors had entered into a settlement agreement with the North American Securities Administrators Association (NASAA) and Robinhood Financial.
Robinhood is liable to pay damages due to operational errors and technical failures.