A Paris court sentenced former Holograph Foundation employee Vitaliy K. to five years in prison for the illegal minting and theft of 1 billion HLG tokens. The defendant will serve two years in custody, while the remaining three years are suspended. Additionally, he faces a fine of €600 000.
The criminal activities occurred between May and August 2024. Vitaliy K. modified the minting rules for HLG tokens to facilitate the theft. At the time of the incident, the stolen assets were valued at approximately $14 million, or €12.5 million.
Two accomplices were also convicted. One received a two-year prison sentence with 14 months suspended and a fine of €80 000. The second accomplice was given a two-year suspended sentence and a fine of €40 000.
The Paris tribunal judiciaire issued the ruling on November 6, 2026. The court found the defendants guilty of organized fraud, money laundering, unauthorized system access, and criminal association. The court rejected the foundation's claim for compensation regarding the token's price decline.
Holograph Foundation, incorporated in the Cayman Islands, is currently preparing for liquidation and has halted its business operations. The project previously reported an exploit involving 1 billion HLG tokens on the Mantle chain in July 2024.
