A Paris court on November 6, 2026, sentenced a former Holograph Foundation employee to five years in prison for fraudulently minting one billion HLG tokens valued at approximately $14 million in 2024. The Ukrainian national, identified as Vitaly K., received a sentence comprising two years of imprisonment and three years suspended under probation, plus a €600,000 fine. He was convicted of organized fraud, money laundering, criminal conspiracy, and unlawful interference with an automated data processing system.

According to court findings, the defendant exploited his previous access to Holograph's infrastructure between May and August 2024 to manipulate token-creation permissions. Two accomplices assisted in distributing the fraudulent tokens across cryptocurrency exchange accounts. The court ordered all three defendants to jointly pay Holograph Foundation €1.15 million for direct financial losses, though it rejected the foundation's claim for compensation related to HLG's subsequent 79% price collapse.

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