SEC Charges Gig Economy Platform for $2.6 Million Unregistered Coin Offering – Bitcoin News


The US Securities and Exchange Commission (SEC) has accused Thor Technologies and its co-founders of conducting an unregistered securities offering. In 2018, the company minted and sold tokens to raise funds for its ‘gig economy platform’, the development of which had not even started at the time.

US securities regulator accuses Thor Technologies management of conducting unregistered ICO

The United States Securities and Exchange Commission has accused Thor Technologies, its co-founder and CEO David Chin and Matthew Moravec, co-founder and former CTO, of conducting an unregistered offering of securities through an initial coin offering (ICO).

Chin and his company are accused of selling ‘Thor tokens’ to the general public to attract funding for the business that was supposed to build a software platform for workers and companies in the ‘gig economy’, the SEC complaint reveals.

The regulator details that digital assets were marketed as an investment opportunity. The sale was promoted with the potential increase in their value and claims that they would be listed on cryptocurrency trading platforms.

The SEC claims that, at the time of the offering, no development work had taken place on the Thor platform and that the tokens could not be used anywhere else. Furthermore, the sale, which raised $2.6 million in fiat and crypto from investors, was not registered with the SEC and also did not qualify for an exemption.

The complaint against Thor and Chin was filed in the US District Court for the Northern District of California. The Commission seeks injunctive relief, the return of allegedly ill-gotten gains plus pre-trial interest and civil penalties.

A second complaint alleges that Matthew Moravec was also involved in the offering and selling of unregistered tokens. He agreed to settle with the SEC and enter a judgment ordering him to repay $407,103, plus pretrial interest of $72,209.45, and pay a civil fine of $95,000. Moravec will also be prohibited from participating in cryptocurrency offerings for a period of three years.

The announcement comes after SEC Chairman Gary Gensler earlier this month stressed the importance of bringing security token issuers into compliance. “Nothing about crypto markets is inconsistent with securities laws,” insisted Gensler, highlighting the risks associated with what he sees as a “largely non-compliant market.”

Tags in this story

Charges, coin offering, Company, Court, Gig Economy, ICO, Investors, offer, sale, SEC, Securities, securities commission, Settlement, software platform, Thor, Thor Technologies, Thor Tokens, Tokens

What do you think about the SEC’s allegations against Thor Technologies and similar cases in the US? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy East European journalist who likes the Hitchens quote: “Being a writer is what I am, not what I do.” In addition to crypto, blockchain and fintech, politics and international economics are two other sources of inspiration.

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