The SEC Fines Thor Technologies and CEO for Unauthorized Securities Promotion
The U.S. Securities and Exchange Commission (SEC) has imposed a $1.05 million fine on Thor Technologies and its CEO, David Chin, for promoting securities without the required license. The SEC found the company guilty in absentia and fined them for distributing project tokens to clients between March and May 2018, raising a total of $2.6 million.
The SEC determined that Thor Technologies and Chin marketed these tokens as investment opportunities, classifying them as securities based on the Howey test. As a result, the regulator ordered the company to compensate investors and cover legal costs amounting to $903,193. Additionally, Thor Technologies and Chin must each pay a $150,000 fine.
In December, the SEC had already charged Thor Technologies, David Chin, and former CTO Matthew Moravec with conducting an unregistered securities offering worth $2.6 million. The charges included violating the Securities Act and sought an injunction, fund restitution to investors, pre-judgment interest, and a fine.
Hot Take: SEC Cracks Down on Unauthorized Securities Promotion
The recent fine imposed by the SEC on Thor Technologies and its CEO highlights the regulatory scrutiny surrounding unauthorized securities promotion in the crypto industry. This enforcement action serves as a warning to companies that fail to comply with licensing requirements when marketing token offerings as investments.
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