The SEC Secures Default Judgment Against Thor Technologies and CEO David Chin
The United States Securities and Exchange Commission (SEC) has obtained a default judgment against Thor Technologies and its Chief Executive David Chin. The SEC revealed this development in a statement on its website, stating that the judgment was issued by the U.S. District Court for the Northern District of California, San Francisco. The SEC had filed a lawsuit against Thor Technologies and Chin for allegedly offering unregistered securities worth $2.9 million.
The default judgment requires the defendants to pay a total of $903,193.06, which includes $744,555 as disgorgement and $158,638.06 as prejudgment interest. Additionally, the court has prohibited both Thor Technologies and Chin from participating in any securities offering involving digital assets.
The SEC’s investigation into this case was conducted by Ruth L. Hawley and Erin E. Wilk, supervised by Jeremy E. Pendrey and Monique C. Winkler from the SEC’s San Francisco Regional Office. The litigation was carried out by Marc Katz, Ms. Hawley, and Ms. Wilk.
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SEC Drops Case Against Ripple Executives
In a separate development, the SEC has dropped its case against Ripple executives Brad Garlinghouse and Chris Larsen for allegedly offering unregistered securities. Both parties agreed to dismiss the aiding and abetting charges against the defendants toward their company.
A Long Road for Thor
The SEC filed lawsuits against Thor Technologies as part of its effort to crack down on crypto assets being marketed as financial securities without proper authorization. In 2022, the financial regulator alleged that both defendants offered “Thor Tokens” to the public, using the profits to fund the company’s operations.
During March to May 2018, the defendants promoted the token as an investment opportunity with the promise of increasing value and future listings on crypto trading platforms. However, it was later revealed that no work had been done on the token’s platform, rendering it unusable elsewhere.
“The complaint further alleges that the offers and sales of Thor Tokens, which raised approximately $2.6 million in cash and crypto assets from investors, were not registered with the SEC and did not qualify for any exemption from registration.”
Hot Take: SEC Continues Crackdown on Unregistered Securities
The SEC’s default judgment against Thor Technologies and its CEO David Chin reinforces the commission’s commitment to crack down on companies offering unregistered securities. This case serves as a reminder to crypto market participants that they must comply with regulatory requirements when conducting token sales or other fundraising activities.
Furthermore, the dismissal of the case against Ripple executives Brad Garlinghouse and Chris Larsen highlights the complexity and evolving nature of regulatory actions in the crypto space. Market participants should stay informed about legal developments to ensure compliance and avoid potential legal consequences.
