The Securities and Exchange Commission (SEC) has received a judgment in its enforcement action against Thor Technologies.
In 2022, the SEC filed an enforcement action against Thor alleging an unregistered security offering as Thor had issued a “crypto asset security” and did not qualify for an exemption. Thor and CEO and founder David Chin reportedly raised $2.6 million in the offering.
The “Thor Tokens” were sold to the general public for the purpose of funding Thor’s business, which was to develop a software platform for gig economy workers and companies. The SEC claimed that Thor and Chin marketed the Thor Tokens as an investment opportunity by promoting the potential increase in value of the tokens and claiming that the tokens would be made available on crypto asset trading platforms.
According to the SEC’s complaint, at the time of the offering, no development work had yet occurred on the Thor platform, and there was no other place to use Thor Tokens.
The complaint further alleges that the offers and sales of Thor Tokens, which raised approximately $2.6 million in cash and crypto assets from investors, were not registered with the SEC and did not qualify for an exemption from registration.
The court has granted a default judgment in the case and has ordered Thor to pay $744,555 with prejudgment interest of $158,638.06 and ordered Thor and Chin to each pay penalties of $150,000.
The court permanently enjoined Thor and Chin from violating the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 and from participating in any crypto asset securities offering.
The SEC has consistently pursued enforcement action against digital assets that have been deemed digital asset securities and have not been registered with the Commission or qualify for an exemption.
