SEC Begins Hunt for Crypto Companies
2022.12.22 11:22
SEC Begins Hunt for Crypto Companies
Budrigannews.com – The Securities and Exchange Commission (SEC) of the United States has filed a complaint against Thor Technologies and David Chin, the company’s co-founder and CEO. The complaint asserts that Thor Technologies’ initial coin offering (ICO) in 2018 was an unregistered securities sale in accordance with the Securities Act of 1933.
Through the sale of Thor (THOR), Thor Technologies raised $2.6 million from 1,600 investors between March and May 2018. Among the 1,600 investors, 200 resided in the United States and were not all accredited. The SEC guaranteed in the suit that the ICO comprised a protections deal.
According to the complaint, which was filed on December 21 in U.S. District Court in San Francisco, Thor claimed it would “develop a software platform for ‘gig economy’ companies and workers,” but that platform was never finished. The SEC went on:
“Thor marketed the Thor Tokens to investors who reasonably viewed the Thor Tokens as an investment vehicle that might appreciate in value based on Thor’s and Chin’s managerial and entrepreneurial efforts in developing the gig economy software platform.”
According to the SEC, there was no actual use for the tokens at the time of the offering. In 2019, the company went out of business because it “was not able to gain momentum and achieve commercial success.” Chin’s LinkedIn profile says that Thor Technologies now makes the mobile app and software-as-a-service (SaaS) platform called Odin, which also offers services for the “gig economy.” The Thor blockchain should not be confused with the business.
The SEC has brought a number of similar charges against crypto operators, the most recent of which is this one. The agency said in June that it was looking into Binance’s ICO in 2017, and LBRY said at the beginning of December that if it lost to the SEC on charges of selling securities without registration, it probably would close. The SEC’s lawsuit against Ripple is currently the most well-known example of this kind of case.
Our CEO Mayande Walker discusses the blockchain *live* with John Paller CEO and Founder, @EthereumDenver and @opolisproject, and David Chin CEO, Thor Technologies @gothortech *today* Wednesday, January 9th at 2pm EST. Details: … #blockchain #telecom #chat pic.twitter.com/1vJJ2mHFJg
— OpenCT (@OpenCryptoTrust) January 9, 2019
The Securities and Exchange Commission (SEC) announced in a statement that Thor co-founder and former chief technology officer Matthew Moravec has settled with the agency and agreed to injunctions and monetary penalties. Moravec has since left the company.
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