The Securities and Exchange Commission (SEC) has charged Thor Technologies, Inc., David Chin, and Matthew Moravec with conducting an unregistered securities offering. Chin is a co-founder and CEO of Thor, and Moravec is a co-founder and former CTO.
According to the SEC, in 2018, the defendants sold Thor Tokens to the public to raise money to operate their business. The complaint filed by the SEC claims that Thor raised $2.6 million from around 1600 investors. The SEC states that Thor did not qualify for an exemption.
Thor claimed that it would develop a software platform for “gig economy” companies and workers but the platform was never completed.
To quote the complaint:
“During the offering, the Thor Tokens had no practical use, as Thor had not developed its software platform. 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.”
Thor announced that it closed its business in April 2019, but the SEC says it has not been dissolved.
The SEC’s complaint, filed in the U.S. District Court for the Northern District of California, charges Thor and Chin with violating the securities registration provisions of Sections 5(a) and (c) of the Securities Act of 1933 (“Securities Act”). The SEC seeks injunctive relief, the return of allegedly ill-gotten gains plus prejudgment interest, and civil penalties.
A second, separate complaint has been filed against Moravec, who has agreed to settle with the SEC. The deal includes a prohibition for a period of three years from participating in any offering of a crypto asset security, a disgorgement of $407,103 plus prejudgment interest of $72,209.45; and imposing a civil penalty of $95,000. The settlement is subject to court approval.