Thor Technologies Faces Legal Setback in SEC Dispute
Thor Technologies, led by founder David Chin, has experienced a legal setback in an ongoing dispute with the U.S. Securities and Exchange Commission (SEC) over the unauthorized sale of $2.6 million in crypto asset securities.
SEC Announces Victory in Default Judgment
The SEC announced on October 19 that they had won their case against Chin and Thor after a default judgment was issued by a San Francisco district court on October 18. A default judgment is issued when one party fails to respond or defend their case within the specified legal timeframe.
Unregistered Sale of Thor Tokens
The SEC’s complaint, filed on December 21, 2022, alleges that Chin and Thor Technologies raised $2.6 million from around 1,600 investors between March and May 2018. The funds were intended for a software platform targeting gig economy workers and companies. The SEC claims that the offers and sales of Thor Tokens were not registered and were promoted as investment opportunities.
Violation of Securities Laws
The SEC accuses Chin and Thor of violating federal securities laws by issuing and selling unregistered Thor Tokens without meeting the necessary requirements for an exemption. They also allege that both Chin and Thor provided investors with misleading information about the project’s progress, partnerships, and income.
Lack of Repayment to Investors
Despite promising to repay investors after halting operations due to regulatory obstacles, Chin did not reimburse any funds but instead redirected some earnings into his personal bank account, according to the SEC.
Judgment and Injunctions
The court has ordered Chin and Thor Technologies to pay $903,193.06 in total, which includes disgorgement and prejudgment interest. In addition, permanent injunctions have been imposed, preventing Chin and Thor from participating in future offerings of crypto asset securities. However, Chin is still allowed to buy or sell securities for his personal account.
Hot Take: Thor Technologies Faces Legal Consequences for Unregistered Sale of Crypto Asset Securities
Thor Technologies, led by David Chin, has been dealt a blow in its legal battle with the SEC over the unauthorized sale of $2.6 million in crypto asset securities. The SEC’s victory in a default judgment means that Chin and Thor have been ordered to pay over $900,000 in disgorgement and prejudgment interest. They are also permanently banned from participating in future offerings of crypto asset securities. This case serves as a reminder that regulatory compliance is essential in the cryptocurrency industry, and failure to adhere to these regulations can result in severe consequences.
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