Markets News Report
October 20, 2023

SEC Wins Legal Battle Against ThorChain ($Thor) and David Chin

SEC Wins in Case Against $Thor Token Company and David Chin

In a recent legal development, the U.S. Securities and Exchange Commission (SEC) secured a default judgment against Thor Technologies and its founder, David Chin, over allegations of an unregistered $2.6 million crypto asset securities offering. This ruling by a San Francisco district court reflects the consequences when defendants neglect legal obligations, such as attending trials or adhering to documentation deadlines.

In late December 2022, the SEC initiated legal proceedings against Thor Technologies. The crux of the issue lay in the fact that Thor and its founder, David Chin, had been selling “Thor Tokens” as a means to finance a software platform for gig economy entities. By April 2019, Thor had already announced the closure of its operations, citing an array of regulatory hurdles as the primary reason.

Implications of the Judgment

As a result of the default judgment – which, as a reminder, typically ensues when a party fails to uphold specific legal actions – Thor and Chin face significant repercussions. The court has imposed a ban on both entities, prohibiting their involvement in any future crypto asset securities offerings.

Moreover, the court mandated a financial penalty, requiring a disgorgement of $744,555, along with a prejudgment interest amounting to $158,638.06.

However, it’s noteworthy that this ruling does not completely ostracize Chin from the world of securities. He retains the right to trade securities, including those of the crypto-asset variety, but only for his personal account.

The SEC’s victory serves as a potent reminder of the importance of adhering to regulatory guidelines, particularly in the swiftly evolving realm of cryptocurrency. While the world of digital assets offers immense potential, it also demands vigilance and compliance.

This case highlights that startups and investors should navigate the crypto landscape cautiously and follow all legal protocols to prevent severe penalties.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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