SEC Secures Victory Over Thor Technologies
The renowned U.S. Securities and Exchange Commission (SEC) recently emerged victorious in securing a default judgment against Thor Technologies and its visionary, David Chin. This win underscores charges linked to an alleged $2.6 million unauthorized crypto asset securities offering.
Unraveling the Court’s Decision
Delving into the facts, the San Francisco district court delivered the judgment on a recent Wednesday. Following close on its heels, the SEC rolled out an official statement the subsequent day. This entire episode brings to light events that commenced in late December 2022, when the SEC initiated charges against the tech enterprise.
Why Default Judgments Are Significant
For those unfamiliar, default judgments arise when one party neglects to perform specific actions. These could range from skipping a crucial trial appearance to overlooking deadlines essential for document submission.
The Backstory of Thor Tokens
Shedding light on the accusations, the SEC pinpointed that both Thor Technologies and David Chin were intricately involved in promoting and vending “Thor Tokens.” The intention behind this move was to amass funds for an innovative software platform tailored for gig economy participants and enterprises. However, what raised eyebrows was the fact that these Thor Token transactions remained unregistered with the SEC. Furthermore, they were aggressively pitched as a lucrative investment avenue. It’s noteworthy that Thor took to the public platform in April 2019 to declare a halt in its operations, attributing it to mounting regulatory hurdles.
The Court’s Verdict
In the aftermath of the judgment, both Thor Technologies and its founder, David Chin, face prohibitions against partaking in any crypto asset securities dealings. The court has also imposed a financial penalty, decreeing a disgorgement of $744,555, coupled with a prejudgment interest tallying up to $158,638.06. However, this ruling doesn’t restrict Chin from engaging in the purchase or sale of securities, including crypto-asset securities, for his personal portfolio.
