The Paris judicial court sentenced Vitaliy K., a former Holograph Foundation employee, to five years in prison, including two years to be served, for unlawfully modifying the rules governing the minting of HLG tokens. Between May and August 2024, the manipulation enabled the creation and theft of one billion tokens valued at approximately €12.5 million, or $14 million. He also received a €600,000 fine, while two accomplices received lighter sentences. The foundation sought compensation for HLG’s price decline, but the court rejected the claim because it found no direct link between the fraudulent acts and the claimed losses, noting that the token was already falling sharply before the misconduct occurred. The foundation’s operations have largely stalled, and it is preparing for liquidation.
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