The US Securities and Exchange Commission (SEC) has commissioned Thor Technologies and its co-founders to conduct an offering of unregistered securities. In 2018, the company minted and sold tokens to raise money for a “work economy platform,” which had not yet begun to develop.
The US securities regulator is accusing Thor Technologies management of conducting an unregistered ICO
The US Securities and Exchange Commission has mandated Thor Technologies co-founder and CEO David Chen and Matthew Moravec, co-founder and former CEO of Thor Technologies, to execute an unregistered securities offering through an Initial Coin Offering (ICO).
Chen and his company are accused of selling “Thor tokens” to the general public to attract financing for a business that was supposed to build a software platform for workers and companies in the “gift economy,” the SEC’s complaint reveals.
The regulator explains in detail that the digital asset has been marketed as an investment opportunity. The sale has been touted with the potential increase in its value and claims to be listed on cryptocurrency trading platforms.
The SEC claims that at the time of the offering, no development work had been done on the Thor platform and that the tokens could not be used anywhere else. Moreover, the sale, which raised $2.6 million in cash and cryptocurrency from investors, was not registered with the Securities and Exchange Commission (SEC) and was not eligible for an exemption either.
The complaint against Thor and Chin was filed in the US District Court for the Northern District of California. The commission is seeking injunctive relief, restitution of alleged wrongful gains as well as interest from prejudices, and civil penalties.
A second complaint alleges that Matthew Moravec was also engaged in offering and selling unregistered tokens. He has agreed to settle with the Securities and Exchange Commission and enter a judgment ordering him to forfeit $407,103, plus advance judgment interest of $72,209.45, and to pay a civil fine of $95,000. Moravec will also be banned from participating in crypto asset offerings for three years.
The announcement comes after SEC Chairman Gary Gensler stressed earlier this month the importance of bringing cryptocurrency issuers into compliance. Gensler insisted that “there is nothing in the cryptocurrency markets that conflicts with securities laws,” while highlighting the risks associated with what he considers to be a “highly non-compliant market.”
What do you think of the SEC charges against Thor Technologies and similar cases in the US? Tell us in the comments section below.
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