A Paris criminal court sentenced former Holograph Foundation employee Vitaly K. to five years in prison for using administrative access to create and transfer 1 billion HLG tokens worth approximately $14 million in 2024. He must serve two years, while three years were suspended under probation, and he was fined €600,000. The court convicted him of organized fraud, money laundering, criminal conspiracy and illegally interfering with an automated data-processing system. Two accomplices received separate prison terms and fines for helping move the assets through cryptocurrency exchange accounts. The court rejected the foundation’s claim for compensation linked to HLG’s market-price decline, finding insufficient evidence of a direct connection, but ordered the defendants to pay €1.15 million for direct financial losses and €106,800 for other damages. Holograph said operations had stalled and that it faced possible liquidation.