SEC Files Unregistered Securities Lawsuits Against Thor Token Creator for 2018 ICO
SEC Files Unregistered Securities Lawsuits Against Thor Token Creator for 2018 ICO
#SEC #Files #Unregistered #Securities #Lawsuits #Thor #Token #Creator #ICO Welcome to InNewCL, here is the new story we have for you today:
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The United States Securities and Exchange Commission (SEC) filed a lawsuit against Thor Technologies and its co-founder and CEO David Chin in US District Court in San Francisco on December 21. The SEC claimed that Thor’s 2018 Initial Coin Offering (ICO) constituted an unregistered security sale under the Securities Act of 1933.
Thor Technologies raised $2.6 million from 1,600 investors between March and May 2018 through the sale of its Thor (THOR) coin. About 200 of the 1,600 investors lived in the United States. Not all of them were accredited investors. The SEC alleged in the lawsuit that the sale constituted a sale of securities.
The complaint states that Thor claimed it was “developing a software platform for businesses and workers in the ‘gig economy’,” although that platform was never completed. The SEC continued:
“Thor marketed the Thor tokens to investors who reasonably viewed the Thor tokens as an investment vehicle that could appreciate in value based on Thor’s and Chin’s management and entrepreneurial efforts in developing the gig economy software platform.”
According to the SEC, the tokens had no practical use at the time of the offering. The store closed in 2019 after “being unable to gain a foothold and achieve commercial success”. According to Chin’s LinkedIn profile, Thor Technologies now produces the software-as-a-service (SaaS) platform and mobile app Odin, which also offer “gig economy” services. The deal should not be confused with the Thor blockchain.
Also Read: 2017 ICOs aren’t over yet: SEC files lawsuit against Dragonchain and its founder
Thor Technologies is the latest in multiple cases involving similar allegations brought by the SEC against crypto operators. The agency announced in June that it was looking into Binance’s 2017 ICO. LBRY stated in early December that its loss to the SEC on charges of unregistered securities sales would likely result in its closure. The most well-known case of this kind is currently the SEC lawsuit against Ripple.
Our CEO Mayande Walker discusses 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
Thor’s co-founder and former chief technology officer, Matthew Moravec, who has since left the company, has settled with the SEC, agreeing to injunctions and fines, the agency said in a statement.
