SEC Wins Case Against Thor Technologies, Founder David Chin In Unregistered Securities Sale

The U.S. Securities and Exchange Commission (SEC) got a win in its case against Thor Technologies for an unauthorized sale of $2.6 million in crypto asset securities.

The SEC received a default judgment against the company and its founder David Chin.

What Happened: In December 2022, the SEC filed a complaint on Chin and Thor for raising $2.6 million from a diverse group of 1,600 investors (200 of them residing in the U.S.) between March and May 2018, as reported by CoinGape. The funds were generated using the sale of its Thor (THOR) coin to be utilized for its business.

The tokens were meant to be used in a software platform connecting gig economy workers and companies. The project never materialized and Chin and Thor allegedly made false and misleading statements about the project’s progress, partnerships and revenue to investors.

The SEC claimed the company involved itself in offering and selling unregistered Thor tokens without qualifying for an exemption. The Thor tokens were marketed as an investment opportunity and promoted for a potential increase in value along with claims of it being available on crypto asset trading platforms.

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In April 2019, Chin assured investors of repayment as it was working on a plan after regulatory challenges forced them to shut down operations. SEC investigations revealed no investor received any funds back and instead, Chin diverted some earnings into his personal bank account, CoinGape reported.

The Court’s Final Judgment: The court ordered Chin and Thor to pay a sum of $903,193.06, including the disgorgement of $744,555 along with a prejudgment interest of $158,638.06. The total amount indicated the funds raised from investors deducting the amount they returned.

Also, permanent injunctions have been imposed on Chin and Thor which block them from participating in any future offerings of crypto asset securities. Notably, Chin is still allowed to buy or sell securities for his personal account.

SEC stated it will continue to monitor the crypto landscape and those infringing on securities law will face action.

Read Next: SEC's Crypto Enforcement Unit: We're Coming For You All

Benzinga’s Future of Digital Assets conference is scheduled in New York on Nov.14. Attend and learn more about how the SEC constantly monitors any fraudulent activities in the crypto space. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm. Buy tickets now!