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U.S SEC Charges Thor Technologies With Violation of Securities Act

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  • The ICO that Thor held in 2018 involved the sale of digital tokens to investors.
  • The action was filed on December 21 in San Francisco Federal District Court.

Thor Technologies and its CEO, David Chin, have been accused of violating the Securities Act of 1933 by the United States Securities and Exchange Commission (SEC), which has filed a complaint against the company and its leaders. The ICO that Thor held in 2018 involved the sale of digital tokens to investors without first registering the offering with the SEC.

Between March and May of 2018, Thor Technologies raised $2.6 million from 1,600 investors. Via the sale of its Thor (THOR) coin. Only a small fraction (200) of the total 1,600 investors were accredited. In its lawsuit, the SEC said that the ICO actually included the sale of securities.

Gig Economy Software Platform

The action was filed on December 21 in San Francisco Federal District Court. And alleges that Thor made false promises by promising to “develop a software platform for ‘gig economy’ companies and workers.” 

According to Thor:

“Thor marketed the Thor Tokens to investors who reasonably viewed the Thor Tokens as an investment vehicle that might appreciate in value based on Thor’s and Chin’s managerial and entrepreneurial efforts in developing the gig economy software platform.”

At the time of the issuance, the SEC claims, the tokens served no useful purpose. The company “was not able to gain traction and achieve commercial success,” therefore it shut down for good in 2019. From what can be gleaned from Chin’s LinkedIn page, Thor Technologies has evolved into a provider of “gig economy” services through the development of the Odin SaaS platform and mobile app. The company is not affiliated with the Thor blockchain in any way.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.