SEC Wins Lawsuit Against Thor Technologies for Unregistered Crypto Offering
The US Securities and Exchange Commission (SEC) has achieved a victory in its legal battle against Thor Technologies and its founder, David Chin. The court ruled in favor of the SEC, finding Thor Technologies and Chin guilty of conducting an unregistered offering of crypto asset securities worth $2.6 million. This judgment, issued by a San Francisco district court, permanently restrains the defendants from violating certain sections of the Securities Act of 1933 that pertain to the sale and offering of unregistered “crypto securities”.
Default Judgment Explained
A default judgment is a ruling entered by a court when the opposing party fails to respond or appear in court. In this case, the defendants failed to file a response or defense within the specified time frame. As a result, the court ordered Thor and Chin to refrain from participating in any “crypto asset securities offering”. However, Chin is still allowed to engage in personal securities transactions. The court also imposed monetary penalties on both Chin and Thor Technologies.
Fraudulent Token Offering Allegations
The SEC’s complaint, filed in December 2022, accuses Thor Technologies and Chin of conducting a fraudulent token offering scheme. They allegedly offered and sold “Thor Tokens” as a means of funding their software platform for gig economy workers and companies. The tokens were promoted as investment opportunities with claims that they would be available for trading on crypto asset platforms. However, the SEC alleges that no development work had been done on the platform at the time of the offering.
Court’s Default Judgment Supports SEC’s Claims
The default judgment issued by the court supports the SEC’s allegations against Thor Technologies and Chin. It permanently restrains them from violating securities registration provisions. The ordered penalties and disgorgement are meant to hold them accountable for their alleged fraudulent actions. The SEC will continue to oversee the case to ensure compliance with the judgment.
Hot Take: Cryptocurrency Market Capitalization Reaches $1.10 Trillion
As of now, the total market capitalization of cryptocurrencies has rebounded to reach $1.10 trillion, a level not seen since October 2nd. This significant recovery in the cryptocurrency market highlights its resilience and potential for growth.
Featured image from Shutterstock, chart from TradingView.com
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