SEC Secures Default Victory Against Thor Token Firm and Founder David Chin
A default judgment is typically granted when one party fails to fulfill specific obligations, such as appearing at a trial or meeting crucial document submission deadlines.
The U.S. Securities and Exchange Commission (SEC) has secured a default judgment against Thor Technologies and its founder, David Chin. This legal decision is linked to allegations of conducting an unregistered offering of crypto asset securities totaling $2.6 million. The court documents that solidify this judgment were issued by a San Francisco district court on Wednesday, and the SEC officially announced the decision on Thursday. Remarkably, this development occurred nearly a year after the SEC initially filed charges against Thor Technologies on December 21, 2022.
Default judgments are typically awarded when one party in a legal dispute neglects its specific responsibilities, which can include failing to appear at a trial or missing crucial deadlines for submitting documents.
The SEC had accused Thor Technologies and David Chin of offering and selling "Thor Tokens" as part of their business venture, aimed at creating a software platform for gig economy workers and companies. Notably, these tokens were not registered with the SEC and were marketed as an investment opportunity. In April 2019, Thor Technologies decided to cease its operations, citing "numerous regulatory challenges."
The court's judgment encompasses provisions that bar Thor and David Chin from participating in any offerings related to crypto asset securities. Additionally, it mandates a disgorgement of $744,555, accompanied by prejudgment interest totaling $158,638.06. Importantly, it should be emphasized that the order does not impose restrictions on David Chin from buying or selling securities, including those related to crypto assets, for his personal account.
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