SEC files unregistered securities charges against Thor Token creators for 2018 ICO

The United States Securities and Exchange Commission (SEC) filed a ailment against Thor Technologies and its cofounder and CEO David Chin successful U.S. District Court successful San Francisco connected Dec. 21. The SEC claimed that Thor’s 2018 archetypal coin offering (ICO) constituted an unregistered securities merchantability nether the Securities Act of 1933.

Thor Technologies raised $2.6 cardinal from 1,600 investors betwixt March and May 2018 done the merchantability of its Thor (THOR) coin. About 200 of the 1,600 investors lived successful the United States. Not each of them were accredited investors. The SEC claimed successful the suit that the merchantability of constituted a securities sale.

The ailment stated that Thor claimed it would “develop a bundle level for ‘gig economy’ companies and workers,” though that level was ne'er completed. The SEC continued:

“Thor marketed the Thor Tokens to investors who reasonably viewed the Thor Tokens arsenic an concern conveyance that mightiness admit successful worth based connected Thor’s and Chin’s managerial and entrepreneurial efforts successful processing the gig system bundle platform.”

The tokens had nary applicable usage astatine the clip of the offering, according to the SEC. The business closed successful 2019 after it “was not capable to summation traction and execute commercialized success.” According to Chin’s LinkedIn profile, Thor Technologies present produces the Odin software-as-a-service (SaaS) level and mobile app, which besides supply “gig economy” services. The concern should not beryllium confused with the Thor blockchain.

Related: 2017 ICOs aren’t implicit yet: SEC files suit against Dragonchain and its founder

Thor Technologies is the latest successful respective cases with akin charges the SEC has brought against crypto operators. The bureau announced successful June that it was looking into Binance’s 2017 ICO. LBRY stated astatine the opening of December that its nonaccomplishment to the SEC connected charges of unregistered information sales would likely pb to its closure. The highest-profile lawsuit of this benignant presently is the SEC’s suit against Ripple.

Our CEO Mayande Walker discusses the blockchain *live* with John Paller CEO and Founder, @EthereumDenver and @opolisproject, and David Chin CEO, Thor Technologies @gothortech *today* Wednesday, January 9th astatine 2pm EST. Details: https://t.co/n2Pw7DWHk0 … #blockchain #telecom #chat pic.twitter.com/1vJJ2mHFJg

— OpenCT (@OpenCryptoTrust) January 9, 2019

Thor cofounder and one-time main exertion serviceman Matthew Moravec, who has since near the company, has settled with the SEC and agreed to injunctions and monetary penalties, the bureau announced successful a statement.