Amidst the chaos of the crypto industry going through multiple reasons, another crypto project came under the financial regulator’s radar. Recently Thor Technologies reported to witness filing of complaints by the SEC including filling against co-founder and CEO David Chin. The agency claimed that the initial coin offering (ICO) of Thor in 2018 was an instance of sale of unregistered securities.
From March to May 2018, Thor Technologies was said to raise about 2.6 million USD worth of funds from 1,600 investors. The fund was done after the sale of its native asset THOR coins. Out of the 1,600 investors, about 200 were residents of the United States and some of them were not recognized. The ICO was claimed by the agency as a sale of securities.
The complaint the Securities and Exchange Commission filed on December 21st noted that Thor said in its claim that it would be helping ‘gig economy companies and workers to develop a software platform. However it never completed its promise, the complaint alleged.
According to the SEC, Thor Tokens were marketed to investors as an investment tool expecting that it would witness an increase in its value given the ‘managerial and entrepreneurial efforts’ of Thor and Chin towards the development of the software platform in the gig economy.
However, the agency claims, the tokens possess no use in practical terms at the offering time.
It “was not able to establish traction and achieve commercial success,” which led to the closure of the company in 2019. In accordance with Chin’s LinkedIn profile, Thor Technologies currently creates the Odin mobile app and SaaS platform, both of which offer “gig economy” services. It is important to distinguish this company from the Thor blockchain.
The SEC has filed other similar complaints against cryptocurrency businesses, and this is the most recent of them. While LBRY indicated at the start of December that its closure was likely due to its loss to the SEC on charges of unregistered security sales, the agency announced in June that it was investigating Binance’s 2017 ICO. The SEC’s lawsuit against Ripple is the most well-known instance of this kind at the moment.
Matthew Moravec, a co-founder of Thor and formerly its chief technology officer who has since left the business, has reached a settlement with the SEC and agreed to monetary fines and injunctions, the agency said in a statement.
Source: https://www.thecoinrepublic.com/2022/12/23/sec-filing-against-thor-crypto-citing-it-unregistered-securities/