Thor Technologies, led by founder David Chin, has suffered a major setback in its ongoing dispute with the U.S. Securities and Exchange Commission (SEC). The SEC announced on October 19th that it had won a default judgment against Chin and Thor after they failed to respond or defend their case within the specified legal timeframe.
The SEC's allegations
The SEC filed a complaint on December 21, 2022, stating that Chin and Thor Technologies raised $2.6 million from approximately 1,600 investors between March and May 2018. The funds were meant for a software platform targeting gig economy workers and companies. The SEC argues that the offers and sales of Thor Tokens were not registered with the SEC and were falsely promoted as investment opportunities.
The SEC also accused Chin and Thor of providing investors with misleading information about the progress, partnerships, and income of the project. Despite Chin's commitment to repay investors after announcing the halt of operations in April 2019, the SEC found that he did not reimburse any funds and instead redirected some earnings into his personal bank account.
Judgment and penalties
The San Francisco district court issued a default judgment against Chin and Thor, ordering them to pay a total of $903,193.06. This includes a disgorgement of $744,555 and prejudgment interest of $158,638.06, representing the total funds they collected from investors minus any repayments.
In addition, permanent injunctions have been imposed, barring Chin and Thor from participating in any future offerings of crypto asset securities. However, Chin is still allowed to buy or sell securities for his personal account.
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