French court sentences former Holograph employee to 5 years in prison, including 2 years of actual imprisonment

TechFlow News, November 8: According to AFP, a Paris criminal court on Friday sentenced a man to five years in prison, including two years of actual imprisonment and a 36-month probation period; he was charged with illegally generating and stealing 1 billion tokens from a crypto platform registered in the Cayman Islands. The tokens involved were HLG issued by the Holograph Foundation. The man had been an employee of the company and illegally minted 1 billion HLG by tampering with the token generation conditions on the platform, then transferred them to wallets under his control; prosecutors said the tokens were worth about $14 million (€12.5 million) at the time. The court found him guilty of sabotaging automated data processing systems, organized fraud, money laundering, and criminal association. Two co-defendants were sentenced to an €80,000 fine plus two years in prison, of which 14 months were suspended, and to a €40,000 fine plus a two-year suspended sentence, respectively. The court also dismissed the Holograph Foundation's claim for compensation over the token price crash, finding that the token price had already fallen sharply before the incident and that the depreciation could not be directly linked to the fraud; prosecutors had previously sought a five-year prison sentence and an €80,000 fine for the principal defendant.

Source: TechFlow