In a recent victory for the US Securities and Exchange Commission (SEC), a default judgment has been obtained against Thor Technologies and its founder David Chin. This judgment comes as a result of the company being found guilty of conducting an unregistered offering of crypto asset securities amounting to $2.6 million.

The San Francisco district court issued the judgment, permanently restraining and enjoining the defendants from violating Sections 5(a) and 5(c) of the Securities Act of 1933. These sections specifically address the sale and offering of what the SEC refers to as “crypto securities” without proper registration or exemption.

A default judgment occurs when the defendant in a lawsuit fails to respond or appear in court. In this case, it means that Thor Technologies and Chin did not file a response, answer, or defense within the designated time frame or fail to appear in court after being served with a summons and complaint.

The court’s ruling includes an injunction against Thor and Chin from participating in any “crypto asset securities offering.” However, the injunction does not prevent Chin from engaging in “personal securities transactions.”

As part of the judgment, Chin has been ordered to pay a civil monetary penalty of $150,000, while Thor Technologies is required to pay a disgorgement of $744,555 along with prejudgment interest of $158,638.06. Both Chin and Thor Technologies are also obligated to pay civil penalties of $150,000 each.

The SEC’s complaint, filed in December 2022, alleges that between March and May 2018, Thor Technologies and Chin offered and sold “Thor Tokens” to the public as a means of raising funds for Thor’s software platform aimed at gig economy workers and companies. However, the complaint asserts that no development work had been conducted on the platform at the time of the offering, and there was no practical use for the tokens.

The court’s default judgment aligns with the SEC’s claims against Thor Technologies and Chin. It serves to permanently restrain them from violating securities registration provisions, while the ordered penalties and disgorgement aim to hold them accountable for their alleged fraudulent actions. The SEC retains jurisdiction over the case to ensure compliance with the judgment.

At present, the total market capitalization of cryptocurrencies has rebounded, reaching a milestone of $1.10 trillion. This resurgence signifies a significant recovery for the overall cryptocurrency market, marking a level not seen since October 2nd.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.