SEC Victory Against Thor Technologies in Crypto Asset Dispute

In an ongoing dispute with the United States Securities and Exchange Commission (SEC) regarding the unapproved transfer of $2.6 million in crypto asset securities, Thor Technologies and its founder and former CEO, David Chin, have suffered a legal setback.

On Wednesday, October 18th, the U.S. District Court for the Northern District of California, in San Francisco, issued a deft judgment against Chin and Thor.

The SEC announced its victory on October 19th. A court issues a default judgment when a party in litigation fails to respond or defend their case within the legal deadline.

This occurs when the defendant fails to respond to the plaintiff’s complaint or to appear in court as required.

According to the complaint filed with the SEC on December 21, 2022, between March and May of 2018, Chin and Thor Technologies raised $2.6 million from approximately 1,600 investors.

Screenshot of the final judgment. Source: SEC

This funding was designated for a software platform designed for gig economy enterprises and workers. The SEC contends that the offers and sales of Thor tokens were promoted as investment opportunities without SEC registration.

The sale of the Thor (THOR) cryptocurrency to approximately 200 investors in the United States generated these funds. The SEC alleged that Chin and Thor violated federal securities statutes by issuing and selling unregistered Thor tokens without satisfying the exemption requirements.

In addition, the SEC alleged that Chin and Thor provided investors with false and misleading information regarding the project’s progress, partnerships, and earnings.

After announcing in April 2019 that it would cease operations due to regulatory obstacles, Chin assured investors of repayment while formulating a strategy.

The SEC determined that despite Chin’s promise, he did not reimburse investors but instead redirected earnings to his personal bank account.

As part of the judgment, Chin and Thor have been ordered to pay a total of $903,193.06, which includes $744,555 in disgorgement and $158,638.06 in prejudgment interest.

This represents the total quantity of capital raised from investors minus the amount repaid.

In addition, irrevocable injunctions have been issued against Chin and Thor, prohibiting them from participating in future offerings of crypto asset securities. Chin may purchase or sell securities from his account.