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SEC’s Victory: Default Judgment Against Thor Technologies and David Chin

SEC Triumphs in Crypto Case Against Thor Technologies and David Chin

As they say, “The law is no respecter of persons” and this is true even more so in the ever-evolving world of cryptocurrency. In a recent event, the US Securities and Exchange Commission (SEC) has scored a significant procedural victory that may set important precedents for future crypto actions. The Commission has obtained a default judgment against the start-up Thor Technologies and its CEO David Chin, in a case involving an unregistered crypto offering estimated to be worth $2.6 million.

Default Judgment Against Unregistered Crypto Offering

The SEC initially filed a case in 2019, accusing Thor Technologies and Chin of orchestrating an unregistered crypto asset securities offering which was contrary to the law. The crux of the SEC’s contention was based on how Thor and Chin raised capital for a software platform through the sale of Thor Tokens without the requisite registration. These tokens were marketed to investors as a high potential investment avenue, promising stellar returns. While the SEC has won similar cases in the past, the default judgment in this case is particularly noteworthy due to its wider implications. The ruling means that the both parties involved, Thor Technologies and Chin, are now prohibited from engaging in any future crypto asset securities offerings. This outcome marks a key triumph for the SEC and serves as a stern reminder for crypto entities about the importance of adhering to laws and regulations.

Thor Technologies in a Nosedive

The regulatory tussle took heavy toll on the company. Thor Technologies was forced to cease their operations in April 2019 due to the growing regulatory challenges and legal complications. At the time, many industry insiders predicted what the outcome could be, and this default judgment by the court stands in line with those projections.

A Hefty Penalty for Disobedience

Justice is known to be blind, but the judgment passed in this case is far from lenient. The court has ordered a disgorgement of $744,555 and a prejudgment interest of $158,638.06. Essentially, this means that the parties involved will have to repay all the ill-gotten gains and also pay a fine. Unsurprisingly, this is a hefty blow for Thor Technologies and Chin. Despite the severity of the charges and subsequent judgment, it is important to note that the court did not bar Chin from buying or selling securities for his personal account. This serves as a minor, albeit significant respite for Chin amidst these proceedings.

SEC Tweets on the Victory

A quick glance through the SEC’s Twitter account offers further insights into this case. In a series of tweets, they celebrated their victory and renewed commitment to ensuring that cryptocurrency firms comply with the existing securities laws.

Conclusion

This serves as a wake-up call not only for cryptocurrency start-ups but also for the larger investor community. At a time when cryptocurrencies are increasingly becoming mainstream, this victory for the SEC highlights the potential risks associated with such investments and further accentuates the importance of due diligence. While the crypto market continues to be a high-reward investment avenue, it is equally important to be aware of its potential pitfalls. As seen in this case, non-compliance with SEC regulations can lead to heavy penalties and even put companies out of business. Avoid falling prey to such pitfalls. Stay informed, stay safe, and remember – when it comes to investing in crypto, do your due diligence, research the company and always ensure everything checks out legally. To stay up to date on more such crypto news, stay tuned to our portal at althalla.com. Where we bring you the latest, unbiased, and most important crypto news that matters to you.
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