The United States Securities and Exchange Commission (SEC), along with its co-founder and CEO David Chin, has filed a complaint against Thor Technologies, alleging that Thor’s 2018 Initial Coin Offering (ICO) constituted an unregistered sale of securities under the Securities Act of 1933 .
Thor Technologies raised $2.6 million from 1,600 investors between March and May 2018 through the sale of Thor (THOR). About 200 of the 1,600 investors lived in the United States, and not all were accredited. The SEC claimed in the lawsuit that the ICO constituted a sale of securities.
The complaint, filed Dec. 21 in US District Court in San Francisco, says Thor claimed it would “develop a software platform for gig economy companies and workers,” but that platform was never completed . The SEC continued:
“Thor marketed the Thor tokens to investors who reasonably viewed the Thor tokens as an investment vehicle that could appreciate in value based on Thor’s and Chin’s management and entrepreneurial efforts in developing the gig economy software platform.”
According to the SEC, the tokens had no practical use at the time of the offering. The store closed in 2019 after “being unable to gain a foothold and achieve commercial success”. According to Chin’s LinkedIn profile, Thor Technologies now produces the software-as-a-service (SaaS) platform and mobile app Odin, which also offer “gig economy” services. The deal should not be confused with the Thor blockchain.
Also Read: 2017 ICOs aren’t over yet: SEC files lawsuit against Dragonchain and its founder
This is the latest in a series of similar charges the SEC has filed against crypto operators. The agency announced in June that it would be reviewing Binance’s 2017 ICO, while LBRY stated in early December that its loss to the SEC amid allegations of unregistered securities sales would likely result in its closure. The most well-known case of this kind is currently the SEC lawsuit against Ripple.
Our CEO Mayande Walker discusses blockchain *live* with John Paller, CEO & Founder, @EthereumDenver and @opolisproject, and David Chin, CEO, Thor Technologies @gothortech *today* Wednesday, January 9th at 2pm EST. Details: https://t.co/n2Pw7DWHk0 … #blockchain #telecom #chat pic.twitter.com/1vJJ2mHFJg
— OpenCT (@OpenCryptoTrust) January 9, 2019
Thor’s co-founder and former chief technology officer, Matthew Moravec, who has since left the company, has settled with the SEC, agreeing to injunctions and fines, the agency said in a statement.
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