SEC wins default judgment against Thor Technologies and founder

Thor Technologies, under the leadership of its founder David Chin, has dealt with a legal obstacle in a continuous dispute with the U.S. Securities and Exchange Commission (SEC) over the unapproved sale of $2.6 M in crypto possession securities.The SEC on Oct. 19 announced their victory after a default judgment was provided against Chin and Thor by a San Francisco district court on Wednesday, Oct. 18. When one party in a claim stops working to respond or protect their case within the defined legal time frame, a default judgment is a legal judgment issued by a court. This usually happens when the offender does not file a response to the plaintiffs grievance or does not appear in court as required.As per the complaint submitted by the SEC on Dec. 21, 2022, Chin and Thor Technologies raised $2.6 million from approximately 1,600 investors between March and May 2018. This financing was intended for a software application platform targeted at gig economy workers and companies. The SECs contention is that the deals and sales of Thor Tokens were not signed up with the SEC and were promoted as financial investment chances. Screenshot of the final judgment Source: SEC These funds were created through the sale of the Thor (THOR) coin, with about 200 of these financiers living in the United States. The SEC implicated Chin and Thor of breaching federal securities laws by releasing and vending unregistered Thor Tokens without satisfying the requirements for an exemption.Furthermore, the SEC asserted that both Chin and Thor provided financiers with misleading and incorrect info worrying the projects improvements, collaborations and income. In April 2019, following their announcement of stopping operations due to regulative challenges, Chin assured investors of payment while creating a method. Regardless of this dedication by Chin, the SEC discovered that he did not reimburse any funds to financiers however rather rerouted some earnings into his individual bank account.Related: Community responds to SEC dropping XRP case and LBRY shutdownAs part of the judgment, they have been instructed to pay an amount of $903,193.06, which encompasses a disgorgement of $744,555 and prejudgment interest totaling up to $158,638.06. This reflects the overall funds they collected from financiers minus the quantity they repaid.Additionally, permanent injunctions have actually been enforced versus Chin and Thor, preventing their involvement in any future offerings of crypto possession securities. Significantly, Chin retains the freedom to buy or offer securities for his individual account. Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the last word?

Other Questions People Ask

What led to the SEC winning a default judgment against Thor Technologies and founder David Chin?

The SEC won a default judgment against Thor Technologies and its founder David Chin due to their failure to respond to the SEC's complaint regarding the unapproved sale of $2.6 million in crypto possession securities. The San Francisco district court issued the judgment on October 18, 2023, after Chin and Thor did not appear or defend themselves in court. This lack of response allowed the SEC to establish that they had violated federal securities laws by selling unregistered Thor Tokens.

What are the implications of the SEC's default judgment against Thor Technologies and its founder?

The default judgment against Thor Technologies and David Chin imposes significant financial penalties, including a total payment of $903,193.06, which consists of disgorgement and prejudgment interest. Additionally, both Chin and Thor are subject to permanent injunctions that prevent them from participating in future offerings of crypto asset securities. This ruling underscores the importance of compliance with securities regulations in the cryptocurrency space.

How did the SEC determine that Thor Technologies and David Chin violated securities laws?

The SEC's determination was based on their investigation into the fundraising activities of Thor Technologies, which raised $2.6 million from approximately 1,600 investors without registering the Thor Tokens as required by law. The SEC's complaint highlighted that Chin and Thor provided misleading information about the project's progress and financial status. This lack of transparency and failure to adhere to regulatory requirements ultimately led to the legal action and subsequent default judgment.

What consequences do Chin and Thor face following the SEC's ruling?

Following the SEC's ruling, David Chin and Thor Technologies are required to pay a total of $903,193.06, which includes funds raised from investors minus any repayments made. They are also subjected to permanent injunctions that bar them from future involvement in crypto asset securities offerings. While Chin can still trade securities for personal accounts, his ability to engage in similar business ventures is severely restricted.